Sandeep Turan Vs Primezone Developers Private Limited (NCLT Chandigarh)
The National Company Law Tribunal (NCLT), Chandigarh Bench, admitted a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) filed jointly by 33 allottees seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Primezone Developers Private Limited for a default of ₹6,76,19,846 along with applicable interest, with the date of default stated as 30 June 2019.
The petitioners submitted that they had booked plots in the “Prime City-Assandh” project after the Corporate Debtor commenced marketing the project in 2013. They paid the agreed amounts and received allotment letters specifying the plot details, investment amounts, and payment acknowledgments. The Corporate Debtor had undertaken to hand over possession within a reasonable period after receipt of all instalments and to execute the sale deeds within a reasonable time, preferably within three months of receiving the full sale consideration.
The allottees alleged that despite making payments, no development took place at the project site and possession was never delivered. They filed consumer complaints before the Haryana State Consumer Disputes Redressal Commission and also approached the Punjab and Haryana High Court seeking cancellation of the project licence. Pursuant to the High Court’s directions, the concerned authority cancelled the Corporate Debtor’s licence. The petitioners further stated that they later learnt that the project property had been auctioned to another company, while the Corporate Debtor remained unresponsive despite repeated requests for possession or refund.
