# In the matter of India Green Reality Ltd. CP (IB) No. 595-7-NCLT-AHM-2018

> NCLT judgment dated 2020-12-02. Citation: TCN-2020-NCLT-00183. The Financial Creditor disbursed Rs. 20,00,000 to the Corporate Debtor on 2016-10-21 based on a…

- **Court:** NCLT
- **Order date:** 2 Dec 2020
- **Citation:** TCN-2020-NCLT-00183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/india-green-reality-ltd-cp-ib-no-595-7-nclt-ahm-2018-9b178df4

## Summary

### Background

The Financial Creditor disbursed Rs. 20,00,000 to the Corporate Debtor on 2016-10-21 based on a Memorandum of Understanding (MoU). The cheque given by the Corporate Debtor for payment was dishonored when presented by the Financial Creditor on 2018-01-21. Subsequently, an application was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.

## Facts

The Financial Creditor, Ravin Daftari HUF, disbursed Rs. 20,00,000 to the Corporate Debtor, India Green Reality Ltd., on 2016-10-21 based on a Memorandum of Understanding (MoU). The Corporate Debtor issued a cheque for the payment, which was dishonored upon presentation by the Financial Creditor on 2018-01-21. The Financial Creditor then filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Debtor argued that the MoU was not signed by its Director and that the amount was received against the booking of a plot. The court noted that the Corporate Debtor had received and used the amount, and the debt was due and payable as per the MoU terms. The dishonoring of the cheque presented by the Financial Creditor was also

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 should be …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of the

…

**Reasoning:** The court reasoned that the Corporate Debtor received the amount, the debt was due and

…

**Interpretation:** Section 7 of the IBC is interpreted to allow for the admission of an

…

**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Ravin Dafta…
- **Respondents:** India Green…
- **Advocates:** Kamlesh Vai…; Vishal…

## Timeline

- **2016-10-21 — Disbursement…**: Financial Creditor disbursed Rs. 20,00,000…
- **2018-01-21 — Cheque Dish…**: Cheque issued by the Corporate Debtor was dishonored when presented by the Financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/india-green-reality-ltd-cp-ib-no-595-7-nclt-ahm-2018-9b178df4