# In the matter of Namdeo Ramchandra Patil & Anr. Vs.  Vishal Ghisulal Jain & Anr. Company Appeal (AT) (Insolvency) No. 821 of 2021

> NCLAT judgment dated 2022-09-19. Citation: TCN-2022-NCLAT-00205. The case involves two appeals against the same order dated 08.09.2021 passed by the…

- **Court:** NCLAT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLAT-00205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/namdeo-ramchandra-patil-anr-vs-vishal-ghisulal-jain-anr-company-appeal-7fbfcafa

## Summary

### Background

The case involves two appeals against the same order dated 08.09.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The appeals concern the rejection of an application filed by landowners/intervenors. The corporate debtor, M/s Wadhwa Buildcon LLP, a real estate company, entered into a Development Agreement with the landowners, including the Appellants, for the development of a parcel of land. As consideration, the corporate debtor agreed to give 45% of the constructed area to the landowners. The Bank of India initiated insolvency proceedings against the Corporate Debtor under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had issued allotment letters to the Appellants for 117 flats and 20 commercial

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## Facts

M/s Wadhwa Buildcon LLP, a real estate company, entered into a Development Agreement dated 23.01.2006 with landowners, including Namdeo Ramchandra Patil and Ravikant Ramchandra Patil. The agreement stipulated that the landowners would receive 45% of the constructed area as consideration for development rights. The landowners also received a refundable security deposit of Rs. 1.75 crores. Subsequently, the Corporate Debtor issued allotment letters to the landowners for 117 flats and 20 commercial shops. Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against M/s Wadhwa Buildcon LLP under Section 7 of the Insolvency and Bankruptcy Code (IBC) on 28.07.2020. The landowners filed a claim as Financial Creditors for Rs. 129,98,09,612.57, including the

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## Issues and analysis

### Issue 1: Whether the landowners, who were allotted flats and commercial shops in lieu of their entitlement …

**Ratio:** The essential element of a 'financial debt' under Section 5(8) of the I&B Code is

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**Reasoning:** The court reasoned that the allotment of flats and commercial shops to the landowners was

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**Interpretation:** The court interpreted Section 5(8) of the I&B Code to mean that a

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**Application:** In this case, the landowners did not disburse any funds to the Corporate

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Namdeo Ramchandra…
- **Respondents:** M/s Wadhwa…; Vishal Ghisulal…

## Timeline

- **2006-01-23 — Development A…**: A Development Agreement was entered between…
- **2020-07-28 — Insolvency In…**: Order passed by the Adjudicating Authority initiating insolvency resolution process…

## 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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