CIRP Admitted Due to Established Debt and Default Under Section 10 of IBC

In re Metcalfe Properties Private Limited (NCLT Delhi)

The petition was filed by Metcalfe Properties Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The application, dated 13 September 2025, was filed by Director Nishant Gupta, duly authorized through a Board Resolution dated 4 June 2025, later approved in an Extraordinary General Meeting held on 28 June 2025.

The Corporate Applicant, incorporated on 26 September 2002, was engaged in real estate development, property acquisition, construction, and related commercial activities involving various types of immovable properties. The company is stated to have significant operational liabilities related to External Development Charges (EDC) and licence fees payable to the Amritsar Development Authority (ADA) for its residential project “Metcalfe Nirvana,” for which a colony development licence was issued on 19 July 2011. Despite repeated demands, the Corporate Debtor has not deposited dues amounting to ₹34,65,24,000.

The Tribunal relied on the NCLAT judgment in Unigreen Global Pvt. Ltd. v. Punjab National Bank, which held that under Section 10 of the IBC, once the adjudicating authority is satisfied that a debt is due and a default has occurred, the application must be admitted if complete in all respects. In this case, the Tribunal was satisfied that the Corporate Applicant had demonstrated debt and default exceeding the statutory threshold.