Mr. Rajendra Kumar Saxena, an allottee of a real estate project, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against 'M/s Earth Gracia Buildcon Private Limited'. The Adjudicating Authority initially dismissed the application, stating that the disbursement made by the Applicant did not fall within the meaning of 'financial debt'.
Mr. Rajendra Kumar Saxena, a real estate allottee, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Earth Gracia Buildcon Pvt. Ltd. The initial application was dismissed by the NCLT on the grounds that the disbursement did not constitute a 'financial debt'. However, the NCLAT overturned this decision, citing the 'Terms and Conditions' of the 'Allotment Letter,' which included an Assured Return, and the fact that Mr. Saxena had already paid Rs. 13 Lakhs to Earth Gracia Buildcon. The NCLAT also referenced its previous ruling in 'Nikhil Mehta & Sons' Vs. 'AMR Infrastructure Ltd.' and the amended Section 5(8)(f) of the Code, which classifies real estate allottees as 'Financial Creditors'. The NCLAT remitted the
…Sign in to view the parties.
The Adjudicating…
The Hon'ble NCLAT set…
Mr. Rajendra Kumar Saxena, an allottee of a real estate project, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against 'M/s Earth Gracia Buildcon Private Limited'. The Adjudicating Authority initially dismissed the application, stating that the disbursement made by the Applicant did not fall within the meaning of 'financial debt'.
Mr. Rajendra Kumar Saxena, a real estate allottee, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Earth Gracia Buildcon Pvt. Ltd. The initial application was dismissed by the NCLT on the grounds that the disbursement did not constitute a 'financial debt'. However, the NCLAT overturned this decision, citing the 'Terms and Conditions' of the 'Allotment Letter,' which included an Assured Return, and the fact that Mr. Saxena had already paid Rs. 13 Lakhs to Earth Gracia Buildcon. The NCLAT also referenced its previous ruling in 'Nikhil Mehta & Sons' Vs. 'AMR Infrastructure Ltd.' and the amended Section 5(8)(f) of the Code, which classifies real estate allottees as 'Financial Creditors'. The NCLAT remitted the
…The Adjudicating…
The Hon'ble NCLAT set…