# In the matter of SAJ Housing Pvt. Ltd. vs. Priyanka Chouhan

> NCLAT judgment dated 2023-09-01. Citation: TCN-2023-NCLAT-00225. This case involves a set of four appeals filed under Section 61 of the Insolvency and…

- **Court:** NCLAT
- **Order date:** 1 Sept 2023
- **Citation:** TCN-2023-NCLAT-00225
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/saj-housing-pvt-ltd-vs-priyanka-chouhan-60d86e5b

## Summary

### Background

This case involves a set of four appeals filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC). The appeals arise from two orders passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi) in CP(IB) No. 354/2021 and related IAs. The first order, dated 01.11.2021, admitted the Corporate Debtor (Drishti India Limited) into the Corporate Insolvency Resolution Process (CIRP). The second order, dated 04.08.2022, ordered the liquidation of the Corporate Debtor. The appeals were filed by the Appellant, challenging these orders. The Corporate Debtor had entered into a Development Agreement (DA) with SAJ Housing Private Limited (SHPL) on 29.05.2012 for developing a piece of land for a housing society. SHPL was to bear the cost of

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## Facts

Drishti India Limited (Corporate Debtor) entered into a Development Agreement (DA) with SAJ Housing Private Limited (SHPL) on 29.05.2012 for developing land for a housing society. SHPL was to bear construction costs, paying Rs.16.15 crore to the Corporate Debtor for development rights, granting SHPL 56% ownership and the Corporate Debtor 44% in the built-up area. Respondent No.2, a Financial Creditor, paid Rs.1.90 crore to the Corporate Debtor on 20.12.2011, recorded as a long-term borrowing in the Corporate Debtor's balance sheet. Due to default in repayment, Respondent No.2 filed a Section 7 application, leading to the Corporate Debtor's admission into CIRP on 01.11.2021 by the Adjudicating Authority. A Resolution Professional was appointed, and claims were invited.

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## Issues and analysis

### Issue 1: Whether the admission of the Corporate Debtor into CIRP by the Adjudicating Authority vide the …

**Ratio:** The key feature of a financial transaction under Section 5(8) of the IBC is consideration

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**Reasoning:** The Adjudicating Authority considered the submissions and documents and was convinced

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**Interpretation:** The court interpreted Section 5(8) of the IBC to include transactions that have

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**Application:** The court found that the amount disbursed by Respondent No.2 to the Corporate

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** SAJ Housing Pvt.…
- **Respondents:** Drishti India…; Priyanka C…

## Timeline

- **2011-12-20 — Loan Disbur…**: Respondent No.2 disbursed Rs.1.90…
- **2012-05-29 — Development A…**: Corporate Debtor entered into a Development…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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