# In the matter of Wave Megacity Centre Private Limited IA 2026 & 2378-2021 in Company Petition No. (IB)- 197(PB)-2021

> NCLT judgment dated 2022-06-06. Citation: TCN-2022-NCLT-02406. The case involves two applications (IA No. 2026 of 2021 and IA No. 2378 of 2021) filed by…

- **Court:** NCLT
- **Order date:** 6 Jun 2022
- **Citation:** TCN-2022-NCLT-02406
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/wave-megacity-centre-private-limited-ia-2026-2378-2021-in-company-petition-no-ib-baee3ff8

## Summary

### Background

The case involves two applications (IA No. 2026 of 2021 and IA No. 2378 of 2021) filed by allottees of M/s Wave Megacity Centre Private Limited, seeking dismissal of a Company Petition (IB-197(PB)/2021) filed by the Corporate Debtor itself under Section 10 of the IBC, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The applicants allege that the Corporate Debtor filed the Section 10 application with malicious and fraudulent intent to escape liabilities.

## Facts

The Corporate Debtor, M/s Wave Megacity Centre Private Limited, is accused by allottees of being a major defaulter, failing to complete construction and hand over possession of properties for over ten years, despite accepting millions of rupees from each subscriber. The allottees, who are the applicants in IA No. 2026 of 2021 and IA No. 2378 of 2021, contend that the Corporate Debtor's application under Section 10 of IBC, 2016, for initiating CIRP against itself, is a unilateral action aimed at usurping their lifetime savings and is driven by malafide intent. The applicants further allege that the Corporate Debtor has not provided reasons for the project's delay of over ten years, despite receiving over Rs. 1400 Crore from more than 2300 subscribers. They assert that

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor filed the application under Section 10 of the IBC, 2016, with …

**Ratio:** The NCLT held that the application under Section 10 of the IBC, 2016, was filed with

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**Reasoning:** The NCLT considered the numerous pending litigations against the Corporate Debtor (285

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**Interpretation:** The NCLT interpreted **Section 65 of IBC, 2016**, which allows for penalties

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**Application:** Applying this interpretation, the NCLT found that the Corporate Debtor's

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## Parties

- **Judges:** Bhaskara Pantula…; HEMANT KUMAR…; +2 more
- **Appellants:** Rakesh T…; Rakesh Taneja &…; +5 more
- **Respondents:** Wave Megacity…
- **Advocates:** For the Applicants…; Priyamvada…; +2 more

## Timeline

- **January 1, 2011 — Project L…**: The project was launched and ought to have been…
- **August 17, 2020 — Complaint…**: A complaint was filed by Rakesh Taneja and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 65 — Fraudulent or malicious initiation of proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-65)

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