FA, 2020 amendment increasing...
In the instant case, the Respondent was purchaser of flat in the appellant-corporate debtor's project and booking of flat was made under a Construction linked plan with stipulated period for completion in terms of agreement.
The Respondent had petitioned under section 7 of the Insolvency and Bankruptcy Code, 2016 against corporate debtor for failing to provide flat ownership. Upon response, the corporate debtor made a plea that balance payment was due to respondent.
The NCLT by impugned order admitted petition holding that due to non-performance of corporate debtor, balance payment was not made by Respondent, as corporate debtor failed to honour commitment in terms of agreement.
The Appellant-corporate debtor raised a plea that application was barred by limitation as date of default was date on which allotment was terminated. However, the objection of the complainant to the limit was not sustainable as petition filed within three years from date, when possession was to be delivered.
Since, the corporate debtor had committed default in not completing building work of flat in time and failed to provide ownership on the stipulated date as per agreement. Therefore, order of Adjudicating Authority in admitting petition filed under section 7 was not to be interfered.
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