# Avenue 54 Welfare Association vs. Sumer Buildcorp Private Limited & Sumer Radius Realty Private Limited

> NCLT judgment dated 2026-05-15. Citation: TCN-2026-NCLT-00521. Avenue 54 Welfare Association, representing homebuyers, filed a Section 7 IBC petition against…

- **Court:** NCLT
- **Order date:** 15 May 2026
- **Citation:** TCN-2026-NCLT-00521
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/avenue-54-welfare-association-vs-sumer-buildcorp-private-limited-sumer-radius-re-077vi

## Summary

### Background

Avenue 54 Welfare Association, representing homebuyers, filed a Section 7 IBC petition against Sumer Buildcorp Private Limited (CD1) and Sumer Radius Realty Private Limited (CD2) to initiate CIRP for the 'Avenue 54' real estate project. The project, jointly promoted by CD1, CD2, and Radius Estate Projects Pvt. Ltd. (REPPL), was stalled, and possession was not delivered by the promised dates (initially Jan 2020, revised to Dec 2023/Dec 2024). A significant financial debt of Rs. 203.27 crores was claimed. CD1 and CD2 raised multiple objections, including the maintainability of a composite petition, limitation, eligibility of an association, and claims of speculative investors. REPPL, a co-promoter, was already under CIRP.

## Facts

Avenue 54 Welfare Association (Petitioner/Financial Creditor) filed a Section 7 IBC petition against Sumer Buildcorp Private Limited (CD1) and Sumer Radius Realty Private Limited (CD2).

The petition seeks to initiate CIRP against CD1 and CD2 for a financial debt of Rs. 203,27,66,369/- related to the 'Avenue 54' project.

CD1 owns 50% undivided share in Plot A, and Radius Estate Projects Pvt. Ltd. (REPPL) owns the remaining 50%.

CD2 is a joint venture company incorporated by CD1 and REPPL to construct and develop the 'Avenue 54' project.

CD2 is the sole owner of adjoining plots (Plot B), and Plot A and Plot B are contiguous.

…

## Issues and analysis

### Issue 1: Whether the Petitioner, being an Association, is eligible to file a petition under Section 7 of the …

**Ratio:** An association of homebuyers, formed for the purpose of resolution of corporate debtors'

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**Reasoning:** The Tribunal, relying on Krrish Florence Estate Buyer's Welfare Association and Vipul

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**Interpretation:** Section 7 of IBC allows an association of homebuyers to act as a financial

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**Application:** The Petitioner, Avenue 54 Welfare Association, was formed by 98 flat buyers

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## Parties

- **Judges:** NILESH S…; Charanjeet Singh…
- **Respondents:** Sumer Buildcorp…; Sumer Radius…; +1 more
- **Other parties:** Committee of…; members of Avenue…; +2 more
- **Advocates:** Mustafa D…; Vyom…; +11 more

## Timeline

- **2016-2018 — Flat Allotments and…**: Promoters allotted flats to members of the…
- **2017-06-29 — Development A…**: Development Agreement signed, granting exclusive development rights for Plot A to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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