# In the matter of Way Estates Limited I.A. (IB) No. 46-KB-2022 in C.P. (IB) No. 259-KB-2021

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03163. Way Estates Limited, the Corporate Applicant, filed an application seeking…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/way-estates-limited-ia-ib-no-46-kb-2022-in-cp-ib-no-259-kb-2021-16e9c422

## Summary

### Background

Way Estates Limited, the Corporate Applicant, filed an application seeking rectification/modification of an order dated 26.10.2021 passed in C.P.(IB) 259/KB/2021 and to dispense with the publication of notice in the newspaper and simultaneously private service of notice and petition. The Corporate Applicant had filed a petition for initiation of Corporate Insolvency Resolution Process (“CIRP”) on 02 September 2021 registered as C.P.(IB) No. 259/KB/2021. The Corporate Applicant submitted that the cost of serving notice along with the petition would amount to Rs.7,03,500/- approximately and the Corporate Applicant has Rs.121/- and Rs.57,896.73 in cash and banks respectively. The Corporate Applicant also stated that in the order dated 26 October 2021, the number of

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## Facts

Way Estates Limited, incorporated on 31 December 2010, is engaged in real estate and agricultural land development. They filed a petition for Corporate Insolvency Resolution Process (CIRP) on 02 September 2021, registered as C.P.(IB) No. 259/KB/2021. They have 3922 customers, with 1005 having made full payments and 2917 defaulting. An order dated 26 October 2021 directed the Corporate Applicant to allot plots to customers who paid in full. The cost of serving notice was estimated at Rs.7,03,500/-, while the Corporate Applicant had limited funds (Rs.121/- and Rs.57,896.73). The Corporate Applicant sought modification of the 26th October 2021 order to allow notice via paper publication due to financial constraints. The Corporate Applicant also stated that the order dated

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## Issues and analysis

### Issue 1: Whether the order dated 26.10.2021 passed in …

**Ratio:** The court has the power to rectify errors in

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**Reasoning:** The court found that the number of shareholders was incorrectly stated in the order dated

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**Interpretation:** The court interpreted its power to rectify errors as necessary to maintain the

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**Application:** The court applied this power by directing that the portion of the order dated

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** Way Estates…

## Timeline

- **2010-12-31 — Incorporation of Way…**: Way Estates Limited was…
- **2021-09-02 — Filing of CIRP…**: The Corporate Applicant filed a petition for initiation of Corporate Insolvency…

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