# In the matter of VATSALYA BUILDERS AND DEVELOPERS PRIVATE LIMITED

> NCLT judgment dated 2026-02-13. Citation: TCN-2026-NCLT-00129. This is an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mr.…

- **Court:** NCLT
- **Order date:** 13 Feb 2026
- **Citation:** TCN-2026-NCLT-00129
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/vatsalya-builders-and-developers-private-limited-fc61cb0d

## Summary

### Background

This is an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mr. Ajay Sanadhya, a nominated person authorized by 136 financial creditors (allottees in a real estate project), for initiating Corporate Insolvency Resolution Process (CIRP) against M/s Vatsalya Builders and Developers Private Limited, the Corporate Debtor (CD). The application pertains to a real estate project named Shiv Residency Phase II.

## Facts

The application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Mr. Ajay Sanadhya filed the application as a nominated person authorized by 136 financial creditors.

The financial creditors are allottees in a real estate project named Shiv Residency Phase II.

The Corporate Debtor, M/s Vatsalya Builders and Developers Private Limited, is the developer of the project.

The total amount claimed to be in default by the Applicant is Rs. 8,88,86,452/- excluding the interest component.

The Corporate Debtor promised to start development work within 24 months and pay interest in case of delay.

The Corporate Debtor contended that the application is barred by limitation.

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## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** The application is not barred by limitation because there has been a continuous breach of

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**Reasoning:** The Applicants have issued letters reminding the CD to hand over the allotted plots, and

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**Interpretation:** Section 22 of the Limitation Act provides for the computation of limitation in

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**Application:** The principle of continuing breach applies in this case, as the CD continuously

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Ajay San…
- **Respondents:** Vatsalya Builders…
- **Other parties:** Prafulla…; 136 Financial…; +2 more
- **Advocates:** Prashant Up…; Kush…; +4 more

## Timeline

- **2025-02-21 — Application…**: C.P. (IB) No.230/MB/2025 filed under Section 7 of the Insolvency and Bankruptcy Code,…
- **2025-08-25 — Interim…**: Tribunal recorded that the Respondent stated that the total dues as claimed in the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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