# In the matter of AMR Infrastructures Ltd. C.P. No. (ISB)-03(PB)-2017

> NCLT judgment dated 2017-01-23. Citation: TCN-2017-NCLT-00987. The case involves an application filed by four applicants seeking to initiate the insolvency…

- **Court:** NCLT
- **Order date:** 23 Jan 2017
- **Citation:** TCN-2017-NCLT-00987
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amr-infrastructures-ltd-cp-no-isb-03pb-2017-2c0c18e8

## Summary

### Background

The case involves an application filed by four applicants seeking to initiate the insolvency process against M/s AMR Infrastructures Ltd. The applicants claim to be financial creditors under Section 7 of the Insolvency and Bankruptcy Code (IBC), based on agreements for assured returns on investments in commercial and residential properties. The applicants allege default in payment of these assured returns and non-delivery of possession of the properties. The respondent, AMR Infrastructure, is a registered company engaged in the real estate business.

## Facts

Four applicants filed an application to trigger the insolvency process against M/s AMR Infrastructures Ltd. Applicant No.1 is a HUF with Shri Nikhil Mehta as its Karta. Applicant No.2 is the wife of Shri Nikhil Mehta, who is also Applicant No.3. Applicant No.4 is Mrs. Praveen Mehta, mother of Applicant No.3. The application was filed through Power of Attorney holder Shri Suresh Mehta. The applicants claimed to be 'Financial Creditors' based on agreements for 'assured returns' on investments in properties. Applicants No.3 and 4 booked office spaces in the 'Kessel-I – Valley' project and executed a Memorandum of Understanding (MOU) dated 12.07.2007. Later, they substituted their booking in the 'I-Mall' project, executing a fresh MOU dated 17.10.2012 for unit No.E-06. The

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## Issues and analysis

### Issue 1: Whether the applicants qualify as 'Financial Creditors' under Section 5(7) of the Insolvency and …

**Ratio:** A 'Financial Creditor' is a person to whom a financial debt is owed and includes a person

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**Reasoning:** The court reasoned that the applicants' claim is based on 'assured returns' associated

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**Interpretation:** The interpretation of 'Financial Creditor' requires a clear establishment of a

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**Application:** In this case, the 'assured returns' were linked to the delivery of possession

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## Parties

- **Judges:** CHIEF JUSTICE…; R. VARADH…
- **Appellants:** Nikhil Mehta &…
- **Respondents:** AMR Infrastructure…; M/s AMR Infrastruc…

## Timeline

- **2007-07-12 — Execution of MOU for…**: Applicants No.3 and 4 executed a Memorandum of Understanding (MOU) for office spaces in…
- **2012-10-17 — Execution of Fresh MOU…**: Applicants No.3 and 4 executed a fresh MOU…

## 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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