The case involves an appeal against the Adjudicating Authority's order dated 2018-12-11, which dismissed a petition filed by Jagbasera Infratech Private Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, Jagbasera Infratech, sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Rawal Variety Construction Ltd, the respondent. The Adjudicating Authority rejected the petition, leading to the current appeal before the National Company Law Appellate Tribunal (NCLAT). The core issue revolves around whether the appellant qualifies as a 'Financial Creditor' under the IBC, considering their investment in a real estate joint venture project with the respondent.
Jagbasera Infratech Private Ltd (Appellant) entered into a Memorandum of Understanding (MoU) on 2011-09-28 and a Joint Venture Agreement on 2012-02-27 with Rawal Variety Construction Ltd (Respondent/Corporate Debtor). Between 2011-10-21 and 2018-05-14, the Appellant paid Rs.4,21,37,850 to the Corporate Debtor. The Appellant claimed this amount was a 'financial debt' under Section 5(8) of the Insolvency and Bankruptcy Code (IBC) because the Corporate Debtor defaulted in returning the amount. The Appellant argued the project was a Real Estate Project, and they were a 'Promoter' interested in forward sales of furnished studio flats. The Respondent contended the Appellant was engaged in forward sales and invested as a 'Promoter' only. The Adjudicating Authority dismissed
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Memorandum of Understanding is made and…
Joint Venture Agreement between M/s Rawal…
The case involves an appeal against the Adjudicating Authority's order dated 2018-12-11, which dismissed a petition filed by Jagbasera Infratech Private Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, Jagbasera Infratech, sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Rawal Variety Construction Ltd, the respondent. The Adjudicating Authority rejected the petition, leading to the current appeal before the National Company Law Appellate Tribunal (NCLAT). The core issue revolves around whether the appellant qualifies as a 'Financial Creditor' under the IBC, considering their investment in a real estate joint venture project with the respondent.
Jagbasera Infratech Private Ltd (Appellant) entered into a Memorandum of Understanding (MoU) on 2011-09-28 and a Joint Venture Agreement on 2012-02-27 with Rawal Variety Construction Ltd (Respondent/Corporate Debtor). Between 2011-10-21 and 2018-05-14, the Appellant paid Rs.4,21,37,850 to the Corporate Debtor. The Appellant claimed this amount was a 'financial debt' under Section 5(8) of the Insolvency and Bankruptcy Code (IBC) because the Corporate Debtor defaulted in returning the amount. The Appellant argued the project was a Real Estate Project, and they were a 'Promoter' interested in forward sales of furnished studio flats. The Respondent contended the Appellant was engaged in forward sales and invested as a 'Promoter' only. The Adjudicating Authority dismissed
…Memorandum of Understanding is made and…
Joint Venture Agreement between M/s Rawal…