# Ashoka Hi-Tech Builders Pvt. Ltd. vs. Sanjay Kundra & Anr. Company Appeal (AT) (Insolvency) No. 46 of 2023

> NCLAT judgment dated 2023-01-18. Citation: TCN-2023-NCLAT-00766. The case involves an appeal against an order dated November 3, 2022, where the Appellant was…

- **Court:** NCLAT
- **Order date:** 18 Jan 2023
- **Citation:** TCN-2023-NCLAT-00766
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashoka-hi-tech-builders-pvt-ltd-vs-sanjay-kundra-anr-company-appeal-c82702a6

## Summary

### Background

The case involves an appeal against an order dated November 3, 2022, where the Appellant was removed from the Committee of Creditors based on an application filed by the Home-Buyers. The Appellant, a landowner, had entered into a development agreement with a corporate debtor. The Adjudicating Authority concluded that the Appellant was not a financial creditor as no amount was disbursed for the time value of money.

## Facts

Ashoka Hi-Tech Builders Pvt. Ltd. (Appellant) filed an appeal against an order that removed them from the Committee of Creditors. The Appellant was a landowner who entered into a development agreement with a corporate debtor. The agreement stipulated that the corporate debtor would carry out construction on the Appellant's 11.40 acres of agricultural land. The agreement also outlined that 32% of the total saleable construction would belong to the Appellant, while the remaining 68% would belong to the Corporate Debtor. The Appellant's claim was admitted, and they were initially inducted into the Committee of Creditors. However, following an application by the Home-Buyers, the Appellant was removed from the Committee of Creditors on the grounds that they were not a

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## Issues and analysis

### Issue 1: Whether the Appellant, being a landowner in a development agreement, can be considered a financial …

**Ratio:** The essential element of a 'financial debt' under Section 5(8)(f) of the IBC is the

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**Reasoning:** The court reasoned that the Appellant, as a landowner, did not disburse any funds to the

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**Interpretation:** The court interpreted Section 5(8)(f) of the IBC, emphasizing the requirement

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**Application:** Applying the ratio to the facts, the court found that the Appellant, as a

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Ashoka Hi-Tech…
- **Respondents:** Sanjay Kundra &…
- **Other parties:** 7th Edition…; Development…; +7 more

## Timeline

- **2022-11-03 — Order Da…**: Order passed removing the Appellant from the Committee of Creditors based on an…
- **2023-01-18 — Hearing…**: Learned Counsel for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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