ABC Construction Ltd. has been involved in construction of residential apartments. Two years ago, the company accepted ₹500 Crores from 2000 individuals with a promise to deliver apartments of various sizes in a resident
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2021
ABC Construction Ltd. has been involved in construction of residential apartments. Two years ago, the company accepted ₹500 Crores from 2000 individuals with a promise to deliver apartments of various sizes in a residential project. Due to various reasons, the company is unable to deliver the apartments to these 2000 individuals as promised within the agreed timeline. If so, how many of them can initiate application under IBC?
Answer & Explanation:
In the given case, an application for initiation of CIRP against ABC Construction Ltd shall be filed jointly by not less than one hundred of such allottees/depositors under the same real estate project or not allottees/depositors less than ten per cent of the total number of such allottees/depositors under the same real estate project, whichever is less. Hence 100 or more allottees/depositors can jointly file an application for CIRP against ABC Construction Ltd.
Topics: Insolvency and Bankruptcy Code, 2016
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