# In the matter of Bulland Realtor Pvt. Ltd. (IB)-626(ND)-2017

> NCLT judgment dated 2018-03-06. Citation: TCN-2018-NCLT-01747. The petitioner, Anuj Saxena, filed a petition seeking to initiate the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 6 Mar 2018
- **Citation:** TCN-2018-NCLT-01747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bulland-realtor-pvt-ltd-ib-626nd-2017-7711574b

## Summary

### Background

The petitioner, Anuj Saxena, filed a petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the respondent, Bulland Realtor Pvt. Ltd., due to the corporate debtor's inability to liquidate its financial debt. The corporate debtor is engaged in real estate development and entered into a Memorandum of Understanding (MOU) with the financial creditor, agreeing to pay interest at 2.4% per month on an investment of Rs. 25 lakhs. As security, a flat with a sale price of Rs. 25 lakhs was offered. The payment was received by the corporate debtor in October 2015. The corporate debtor offered assured returns for 24 months, reserving the right to foreclose the loan earlier.

## Facts

Anuj Saxena invested Rs. 25 lakhs with Bulland Realtor Pvt. Ltd., a real estate developer, based on a Memorandum of Understanding (MOU). The MOU stipulated an interest rate of 2.4% per month on the investment. As security for the investment, Bulland Realtor offered a flat valued at Rs. 25 lakhs. The payment was received by Bulland Realtor in October 2015. The MOU provided for assured returns for a period of 24 months. Bulland Realtor paid assured returns only until July 2017. Anuj Saxena issued a legal notice on October 23, 2017, to Bulland Realtor demanding repayment, but the company failed to respond. Anuj Saxena claimed Rs. 37,10,000, representing the principal amount and accrued interest. Bulland Realtor argued that the debt was not due, citing a 90-day notice

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of …

**Ratio:** A Financial Debt means a debt along with interest and includes money borrowed against

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**Reasoning:** The Adjudicating Authority viewed that the Corporate Debtor is in default of liquidating

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**Interpretation:** The court interpreted the definition of 'financial debt' under the IBC to

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**Application:** The court applied the definition of financial debt to the facts, concluding

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Anuj Sa…
- **Respondents:** Bulland Realtor…
- **Advocates:** A. K. D.…; Nakul M…; +2 more

## Timeline

- **2015-10-01 — MOU Date…**: Memorandum of Understanding (MOU) signed between…
- **2015-10-01 — Payment Re…**: Bulland Realtor Pvt. Ltd. received…

## 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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