# In the matter of Bhaskar Biswas Vs. Avaani Oxford Owners’ Association  and Ors. CA (AT) (Ins) No. 864 of 2020

> NCLAT judgment dated 2021-07-13. Citation: TCN-2021-NCLAT-00188. The appeal was filed by the Suspended Director of Oxford Facilities Management (the Corporate…

- **Court:** NCLAT
- **Order date:** 13 Jul 2021
- **Citation:** TCN-2021-NCLAT-00188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhaskar-biswas-vs-avaani-oxford-owners-association-and-ors-ca-7458590b

## Summary

### Background

The appeal was filed by the Suspended Director of Oxford Facilities Management (the Corporate Debtor) against the order dated March 13, 2020, passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata, in Company Petition No. (IB) No. 2084/KB/2019. The Adjudicating Authority admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('IBC') filed by Avaani Oxford Owners' Association, initiating the Corporate Insolvency Resolution Process (CIRP). The application claimed a debt of Rs. 5,64,72,615.80, representing deposits made by flat owners with the Developer, M/s Avaani Projects and Infrastructure Ltd., when they executed agreements. The appellant argued that a separate CIRP was initiated against the

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## Facts

Bhaskar Biswas, the Suspended Director of Oxford Facilities Management, filed an appeal against the order of the Adjudicating Authority (NCLT), Kolkata, which initiated CIRP against Oxford Facilities Management based on an application filed by Avaani Oxford Owners' Association under Section 7 of the IBC. The claim was for Rs. 5,64,72,615.80, representing deposits made by flat owners with M/s Avaani Projects and Infrastructure Ltd. The appellant argued that a separate CIRP was initiated against the Developer, and the Respondent No. 1 had filed a claim in that CIRP. The appellant also challenged the maintainability of the Section 7 IBC proceedings, arguing that the claim should be against the Developer Company and that the debt was not a financial debt. The flat owners

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## Issues and analysis

### Issue 1: Whether the amount claimed by the Respondent No. 1 constitutes a 'Financial Debt' under Section …

**Ratio:** Section 5(8)(f) of the IBC defines 'Financial Debt' to include any amount raised from an

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**Reasoning:** The court reasoned that the amounts were collected by the Developer and kept with its

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**Interpretation:** The interpretation of Section 5(8)(f) of the IBC is that any amount raised from

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**Application:** In this case, the amounts were collected from the flat owners by the Developer

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## Parties

- **Judges:** A.I.S. C…; V. P. S…
- **Appellants:** Bhaskar B…
- **Respondents:** Oxford Facilities…; Avaani Oxford…
- **Advocates:** Jishnu…; Soumya…; +10 more

## Timeline

- **2010-05-04 — Incorporation of…**: Oxford Facilities…
- **2015-06-18 — Incorporation of…**: Avaani Oxford Owners'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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