# In the matter of Mukesh N. Desai Vs. Piyush Patel & Ors. Company Appeal (AT) (Insolvency) No. 780 of 2020

> NCLAT judgment dated 2022-02-24. Citation: TCN-2022-NCLAT-00611. This case involves a challenge to an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 24 Feb 2022
- **Citation:** TCN-2022-NCLAT-00611
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mukesh-n-desai-vs-piyush-patel-ors-company-appeal-6c1cda46

## Summary

### Background

This case involves a challenge to an order passed by the National Company Law Tribunal (NCLT), Ahmedabad Bench, which allowed an application by Mr. Piyush Patel, a promoter of M/s. Shipraj Developers Private Limited (the Corporate Debtor). The application sought a stay on the Corporate Insolvency Resolution Process (CIRP) and cancellation of Mr. Mukesh Desai's claim as a Financial Creditor. The NCLT allowed the application, leading to the present appeal.

## Facts

M/s. Nuvoco Vistas Corporation Limited initiated CIRP against Shipraj Developers Private Limited ('Corporate Debtor') under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 2019-07-24, and an Interim Resolution Professional (IRP) was appointed. During the CIRP, the 'Corporate Debtor' filed I.A. 752 of 2019 seeking a stay on the CIRP, cancellation of Mukesh Desai's claim as a Financial Creditor, and payment to R-3 from the company's current account. Mukesh Desai, the Appellant, was the sole member of the constituted CoC. The 'Corporate Debtor' objected to Mukesh Desai's inclusion as a 'Financial Creditor' because he was a partner in the 'Corporate Debtor's' project, owning 25% shares in the land. Mukesh Desai allegedly paid

…

## Issues and analysis

### Issue 1: Whether a landowner intending to share profits emanating from the agreed venture, by way of an MoU, …

**Ratio:** The ratio is that a person who invests in a real estate project with the intention of

…

**Reasoning:** The court reasoned that the amount invested by the Appellant was not a 'Financial Debt'

…

**Interpretation:** The interpretation is that the definition of 'Financial Creditor' and

…

**Application:** In this case, the court applied the ratio and reasoning to the specific facts,

…

## Parties

- **Judges:** Shreesha…
- **Appellants:** Mukesh N.…
- **Respondents:** Shipraj Developers…; Piyush…

## Timeline

- **2014-05-26 — MoU Exec…**: A Memorandum of Understanding (MoU) was entered into between Mr. Mukesh Desai and the…
- **2019-07-24 — CIRP Init…**: CIRP was initiated against Shipraj Developers Private Limited based on an application…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/mukesh-n-desai-vs-piyush-patel-ors-company-appeal-6c1cda46