# In the matter of Garima Real Estate & Allied Limited

> Read the full IBC case summary for In the matter of Garima Real Estate & Allied Limited. NCLT judgment dated 2025-10-09. Citation: TCN-2025-NCLT-01525.

- **Court:** NCLT
- **Order date:** 9 Oct 2025
- **Citation:** TCN-2025-NCLT-01525
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/garima-real-estate-allied-limited-a71f0399

## Summary

### Background

The application was filed by financial creditors under Section 7 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to default in repayment of financial debt arising from an allegedly illegal investment scheme.

## Facts

Bhojraj Verma & Ors, acting as financial creditors, filed an application on November 6, 2019, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Garima Real Estate & Allied Limited, the corporate debtor. The application sought a declaration of moratorium and the appointment of an Interim Resolution Professional.

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## Issues and analysis

### Issue 1: Whether the transactions between the applicants and the corporate debtor constitute 'financial…

**Ratio:** Transactions involving consideration for the time value of money, where investors are…

**Reasoning:** The Tribunal found that the transactions involved consideration for the time value of…

**Interpretation:** The court interpreted 'financial debt' broadly to include investment schemes…

**Application:** The applicants, being investors promised assured returns, were deemed to fall…

## Parties

- **Judges:** SANJEEV S…; Mohan P.…
- **Advocates:** For the Applicant:…; For the Respondent…

## Timeline

- **October 29, 2007 — Incorporation of…**: Garima Real Estate & Allied Limited was…
- **May 3, 2016 — SEBI Ord…**: SEBI prohibited the Corporate Debtor and its directors from raising further funds under…

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