# In the matter of Jain Heights and Structures Pvt. Ltd. & Anr. Vs. Bheemasamudra Land Developers and Builders Company Appeal (AT) (CH) (INS) No. 213 of 2021

> NCLAT judgment dated 2022-01-27. Citation: TCN-2022-NCLAT-00657. The case involves an appeal against an order passed by the Adjudicating Authority (NCLT,…

- **Court:** NCLAT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLAT-00657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jain-heights-and-structures-pvt-ltd-anr-vs-bheemasamudra-land-developers-and-bui-5afbff9d

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (NCLT, Bengaluru Bench) which admitted an application filed by the Respondent under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Appellants, Jain Heights and Structures Pvt. Ltd., claim that the Respondent, Bheemasamudra Land Developers and Builders, is not an operational creditor and that there is a pre-existing dispute regarding the debt. The corporate debtor purchased land from the respondent, and a subsequent Memorandum of Understanding (MOU) was executed for additional services related to the land. Disputes arose regarding the MOU and payments, leading to the initiation of CIRP.

## Facts

Jain Heights and Structures Pvt. Ltd. (Appellants) filed an appeal against the order of the Adjudicating Authority (NCLT, Bengaluru) which admitted an application under Section 9 of IBC filed by Bheemasamudra Land Developers and Builders (Respondent/Operational Creditor). The Appellants own 96% of the equity share capital in Metrik Infra Projects Pvt. Ltd. (Corporate Debtor). The Corporate Debtor purchased land from the Respondent for Rs.24,06,00,000. Subsequent to the purchase, disputes arose regarding the land due to pending suits. The Corporate Debtor issued cheques to the Respondent, which were later claimed to be lost. A Memorandum of Understanding (MOU) was allegedly entered into on 08.06.2015, where the Corporate Debtor agreed to pay Rs.6 Crores to the

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## Issues and analysis

### Issue 1: Whether the Respondent is an Operational Creditor …

**Ratio:** The definition of 'Operational Creditor' under Section 5(20) of the I&B Code, 2016,

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**Reasoning:** The court reasoned that the Respondent provided services to the Corporate Debtor,

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**Interpretation:** The court interpreted the definition of 'Operational Creditor' and 'Operational

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**Application:** The court applied the definition of 'Operational Creditor' to the facts of the

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## Parties

- **Judges:** M. Venu…; Kanthi Na…; +1 more
- **Appellants:** Jain Heights and…
- **Respondents:** Metrik Infraprojec…; Bheemasamudra…

## Timeline

- **2015-06-08 — Sale Deed and MOU…**: Sale Deed executed between the Respondent and the Corporate Debtor. Alleged execution of…
- **2016-09-28 — Legal Notice by…**: Corporate Debtor issued a legal notice calling upon the Operational Creditor to settle…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(20) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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