# In the matter of Mr. Atul Mittal Vs. Khushal Infratech Private Limited & Anr. CA (AT) No. 86-2018

> NCLAT judgment dated 2018-05-01. Citation: TCN-2018-NCLAT-00313. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 1 May 2018
- **Citation:** TCN-2018-NCLAT-00313
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-atul-mittal-vs-khushal-infratech-private-limited-anr-ca-62282ee6

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal) admitting an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Khushal Infratech Pvt. Ltd against APS Buildtech Pvt. Ltd. (‘Corporate Debtor’). The Adjudicating Authority had also passed an order of ‘Moratorium' and appointed an ‘Interim Resolution Professional'. The appellant, Mr. Atul Mittal, Director of APS Buildtech Pvt. Ltd., contends that the respondent does not fall within the definition of ‘Financial Creditor'.

## Facts

Mr. Atul Mittal, Director of APS Buildtech Pvt. Ltd. (‘Corporate Debtor’), filed an appeal against an order dated 09.02.2018 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Khushal Infratech Pvt. Ltd. The Adjudicating Authority had also passed an order of ‘Moratorium' and appointed an ‘Interim Resolution Professional'. The agreement for sale of flat reached between ‘Corporate Debtor' and the 1st Respondent as noticed by the Adjudicating Authority included a clause where the Second Party (Khushal Infratech) was desirous of booking/holding 02 No. of flats in the said Project under flexi payment plan of the First Party for a lock in period

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## Issues and analysis

### Issue 1: Whether the 1st Respondent, Khushal Infratech Pvt. Ltd., qualifies as a ‘Financial Creditor’ under …

**Ratio:** The legal principle applied is the definition of ‘Financial Creditor’ under the

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**Reasoning:** The court reasoned that the 1st Respondent failed to prove that they had complied with

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**Interpretation:** The interpretation involves understanding the definition of ‘Financial

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Atul Mi…
- **Respondents:** APS Buildtech…; Khushal Infratech…

## Timeline

- **2018-02-09 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order admitting the…
- **2018-05-01 — Appeal F…**: Mr. Atul Mittal, Director of APS Buildtech Pvt. Ltd. (‘Corporate Debtor’), filed an…

## 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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