# In the matter of Expat Projects and Development Pvt. Ltd. C.P. (IB) No. 30-BB-2020

> NCLT judgment dated 2021-03-12. Citation: TCN-2021-NCLT-02723. The case involves a petition filed by Mrs. Jagruti Govind Punjabi and three others, identified…

- **Court:** NCLT
- **Order date:** 12 Mar 2021
- **Citation:** TCN-2021-NCLT-02723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/expat-projects-and-development-pvt-ltd-cp-ib-no-30-bb-2020-36c5331b

## Summary

### Background

The case involves a petition filed by Mrs. Jagruti Govind Punjabi and three others, identified as Petitioners/Applicants/Financial Creditors, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the I&B (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Expat Projects and Development Pvt. Ltd. The petitioners invested in a development project called 'Golden Greens' proposed by the Corporate Debtor, making payments towards the scheme. However, the Corporate Debtor failed to execute the Agreement of Sale or complete the development within the agreed timeframe, leading the petitioners to seek a refund of their payments.

## Facts

M/s. Expat Projects and Development Pvt. Ltd. was incorporated on 14.09.2007. The Corporate Debtor approached the Petitioners with a proposal to invest in a development project called 'Golden Greens'. The Petitioners individually decided to invest and executed Token Receipt Agreements with the Corporate Debtor. Applicants 1, 2, and 3 each paid Rs.2,00,000/- towards the initial booking amount. Applicant No.4 also executed a Token Receipt Agreement and paid Rs.2,76,000/-. The Applicants agreed to invest Rs.9,25,000/- each in the scheme. The Corporate Debtor assured Applicant No.4 that a formal agreement would be executed soon. The Corporate Debtor failed to execute the Agreement of Sale or complete the development within the stipulated time. The Applicants sent legal

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## Issues and analysis

### Issue 1: Whether the Petitioners qualify as Financial Creditors under Section 5(8) of the IBC, considering …

**Ratio:** The definition of 'financial debt' under Section 5(8) of the IBC requires a debt along

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**Reasoning:** The court reasoned that the investment was for the purchase of agricultural land, which

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**Interpretation:** The court interpreted the provisions of Section 5(8) of the IBC in light of the

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**Application:** The court applied the definition of 'financial debt' to the facts, finding that

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Jagruti Govind…
- **Respondents:** M/s. Expat…

## Timeline

- **2007-09-14 — Incorporation of…**: M/s. Expat Projects and Development Pvt. Ltd. was incorporated under the Companies Act,…
- **2012-09-28 — Execution of Token…**: The Petitioners executed Token Receipt Agreements with the Corporate Debtor for…

## 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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