# In the matter of Rajendra Kumar Saxena Vs. Earth Gracia Buildcon Private Limited CA(AT)(Insolvency) No. 187-2018

> NCLAT judgment dated 2018-05-07. Citation: TCN-2018-NCLAT-00301. The case involves an appeal before the National Company Law Appellate Tribunal (NCLAT)…

- **Court:** NCLAT
- **Order date:** 7 May 2018
- **Citation:** TCN-2018-NCLAT-00301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajendra-kumar-saxena-vs-earth-gracia-buildcon-private-limited-ca-621459fd

## Summary

### Background

The case involves an appeal before the National Company Law Appellate Tribunal (NCLAT) concerning a 'Booking Application Form' signed by the Appellant and accepted by the Respondent, who is also the 'Corporate Debtor'. The terms of the form stipulate that if the apartment is not completed within the agreed timeframe, the 'Corporate Debtor' is obligated to refund the amount with interest within a scheduled time. The Appellant contends that the terms and conditions of the Booking Form qualify them as a 'Financial Creditor' of the 'Corporate Debtor' under Section 5(7) read with Section 5(8) of the Insolvency & Bankruptcy Code, 2016.

## Facts

Rajendra Kumar Saxena (Appellant) entered into a 'Booking Application Form' with Earth Gracia Buildcon Private Limited (Respondent/Corporate Debtor). The agreement stipulated that if the apartment was not completed within the agreed timeframe, the Corporate Debtor would refund the amount with interest within a scheduled time. The Appellant claims that the terms and conditions of the Booking Form qualify them as a 'Financial Creditor' of the 'Corporate Debtor' under Section 5(7) read with Section 5(8) of the Insolvency & Bankruptcy Code, 2016. This claim is based on the premise that the unfulfilled obligation to deliver the apartment or refund the amount constitutes a financial debt. The relevance of these facts lies in determining whether a 'financial debt' exists

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## Issues and analysis

### Issue 1: Whether the Appellant qualifies as a 'Financial Creditor' of the 'Corporate Debtor' under Section …

**Ratio:** The legal principle revolves around the definition of 'Financial Creditor' and 'Financial

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**Reasoning:** The court needs to determine if the amount paid by the Appellant under the 'Booking

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**Interpretation:** The interpretation of Section 5(7) and Section 5(8) of the IBC is crucial. The

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**Application:** The ratio and reasoning will be applied to the specific facts of the case,

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Rajendra Kumar…
- **Respondents:** Earth Gracia…

## Timeline

- **2018-05-07 — Order Da…**: Learned Counsel for the Appellant referred to the terms and conditions of ‘Booking…
- **2018-05-09 — Filing De…**: Deadline for filing process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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