IN THE NATIONAL COMPANY LAW TRIBUNAL JAIPUR BENCH CORAM: SHRI DEEP CHANDRA JOSHI HON’BLE JUDICIAL MEMBER SHRI PRASANTA KUMAR MOHANTY HON’BLE TECHNICAL MEMBER CP No. (IB)- 217/7/JPR/2019 (Under Section 7 of the Insolvency and Bankruptcy Code, 2016 Read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016)

IN THE MATTER OF:

SHRI GAURAV AGARWAL …Financial Creditor Versus M/S STAR VALLEY HEIGHTS LLP …Corporate Debtor MEMO OF PARTIES Shri Gaurav Agarwal R/o 2/142, Vidhyadhar Nagar, Jaipur, Rajasthan- 302039 …Financial Creditor VERSUS M/s Star Valley Heights LLP R/o 707, Soni Paris Point, A-26-A, Jai Singh Highway, Banipark, Jaipur, Rajasthan- 302016 …Corporate Debtor For the Financial Creditor : Anand Sharma, Adv.

For the Corporate Debtor : Naresh Kumar Sejvani, Adv.

Order Pronounced On: - 13.01.2023

ORDER

Per: Shri Deep Chandra Joshi, Judicial Member

1. This application is filed by Shri Gaurav Agarwal (‘Applicant’/ ‘Financial Creditor’) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (‘IBC / Code’) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s Star Valley Heights LLP (‘Respondent’ / ‘Corporate Debtor’) seeking initiation of Corporate Insolvency Resolution Process (‘CIRP’), pursuant to default in repayment of loan amount.

2. The Corporate Debtor is a Limited Liability Partnership registered with Registrar of Companies, Jaipur holding LLPIN AAD-6787. The Corporate Debtor is involved in the business of construction. It is seen from the website of the Ministry of Corporate Affairs that the Corporate Debtor was earlier a private company having its registered address at 108, 1^st Floor, Soni Paris Point Complex, A-26-A, Sawai Jai Singh Highway, Banipark, Jaipur. Then it was converted to LLP and the registered address of the LLP i.e. the Corporate Debtor herein is Star Valley Heights LLP K No. 284/1, 287/1/2 Machara, Neendad, Sikar Road, Jaipur, Rajasthan- 302013.

3. The details of the transactions leading to the filing of this application averred by the Applicant are as follows:

a. The Financial Creditor is a homebuyer who had paid an amount of Rs. 4,39,290/- (Rupees Four Lakh Thirty-Nine Thousand Two Hundred Ninety) to the Corporate Debtor as ‘registration amount’ to purchase a flat in the residential building complex named ‘Star Valley Aegina’. Pursuant to this, the Financial Creditor entered into an Agreement to Sale with the Corporate Debtor on 12.04.2016 in furtherance to purchase the abovesaid flat i.e. Flat No. 1002, 3BHK flat situated on the 10^th floor having build up area of 1220.25 sq. ft.

b. As per the terms of the Agreement to Sale, the Corporate Debtor was to raise a demand note for payment in accordance with the construction plan and the payment for the same was to be made within 15 days from the issue of demand notice. After payment of Rs. 4,39,290/- (Rupees Four Lakh Thirty-Nine Thousand Two Hundred Ninety) no further demand notice was raised by the Corporate Debtor.

c. In January 2019, the Financial Creditor visited the site of the project and discovered that the entire project has been scrapped off. A new project by the name of ‘Laxmi Vilas’ was in progress on the same location as that of the erstwhile project. Thereafter, the Financial Creditor discovered from the Real Estate Regulatory Authority (“RERA”) that this project had been registered and the actual commencement date of the same was 11.01.2017. After getting this information, the Financial Creditor preferred a demand notice to the Corporate Debtor and also wrote emails demanding the advance amount paid for purchase of a flat in Star Valley Aegina.

d. The Financial Creditor has submitted that the amount paid to the Corporate Debtor has a commercial effect of borrowing and would be classified as “financial debt” under the provisions of the Code. The details of the debt as reflected in Part IV of the Application is as follows: Part IV PARTICULARS OF FINA