If Agreements of Sale of plot only indicates that the Corporate Debtor has to complete the project in a prescribed time frame and were not properly executed as detailed, it cannot give any cause of action for the Petitioners to file any application under the provisions of the Code – Shri BabuPhutane Sakamani Vs. Bhagyalakshmi Homes LLP – NCLT Bengaluru Bench
The main Agreement of Sale contains only the Dispute Resolution, it did not contain any condition with regard to the cancellation of the plots and by reading the Agreements of Sale, it only indicates that the Corporate Debtor has to complete the project in a prescribed time frame. However, the Agreements of Sale and the letters of cancellation of the Agreement, were not properly executed as detailed supra. Therefore, it cannot give any cause of action for the Petitioners to file any application/petition under the provisions of the Code. The procedure prescribed under the Code is summary in nature and the Adjudicating Authority is not supposed to make roving enquiry in disputed question of facts. The Petitioners cannot simply invoke provisions of the Code, without prima facie proving that there are legally executed documents in order to raise debt in the first instance.
