# In the matter of Kindle Developers Pvt. Ltd. (IB)-470-(ND)-2017

> NCLT judgment dated 2018-03-09. Citation: TCN-2018-NCLT-01733. The case pertains to an application filed for the initiation of the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 9 Mar 2018
- **Citation:** TCN-2018-NCLT-01733
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kindle-developers-pvt-ltd-ib-470-nd-2017-a98ccecb

## Summary

### Background

The case pertains to an application filed for the initiation of the Corporate Insolvency Resolution Process (CIRP) against Kindle Developers Pvt. Ltd. The petitioner, Amit Kumar Malik, claims to be a Financial Creditor. The petitioner booked a two-bedroom apartment in a project developed by the Corporate Debtor, Subh Kamna Lords in Sector 79-Noida, and paid Rs. 20,77,531, which was acknowledged by the Corporate Debtor. An allotment letter was issued. However, construction did not commence, and the Noida Authority cancelled the project. The petitioner sought a refund, and the Corporate Debtor issued four cheques towards the refund. These cheques were not deposited, as the Corporate Debtor undertook to liquidate the liability through RTGS. The RTGS payments were not

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## Facts

Amit Kumar Malik booked a two-bedroom apartment in the Subh Kamna Lords project developed by Kindle Developers Pvt. Ltd. in Sector 79, Noida. He paid Rs. 20,77,531, which was acknowledged by the Corporate Debtor, and an allotment letter was issued. Due to the lack of construction, the Noida Authority cancelled the project. Malik requested a refund, and Kindle Developers issued four cheques (nos. 010178 to 010181) to return the payment. These cheques were not deposited because the company promised to make the payment through RTGS. The RTGS transfer never happened, and the cheques remained unpaid. As a result, Malik filed a petition under Section 7 of the IBC, 2016, claiming to be a Financial Creditor seeking initiation of the Corporate Insolvency Resolution Process

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## Issues and analysis

### Issue 1: Whether the petitioner, Amit Kumar Malik, qualifies as a Financial Creditor under the Insolvency …

**Ratio:** A financial creditor is defined under the IBC as a person to whom a financial debt is

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**Reasoning:** The court determined that the petitioner had advanced money against the consideration for

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**Interpretation:** The interpretation of 'financial creditor' hinges on whether the debt arises

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**Application:** In this case, the petitioner's payment for the apartment, coupled with the

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## Parties

- **Judges:** Ina Mal…; Deepa Kr…; +1 more
- **Appellants:** Amit Kumar…
- **Respondents:** Kindle Developers…; M/s. Kindle…
- **Advocates:** Ajay Fa…

## Timeline

- **2018-03-09 — Order Del…**: Order delivered on 9.3.2018 regarding the initiation of Corporate Insolvency Resolution…
- **N/A — Apartment B…**: Amit Kumar Malik booked a two-bedroom apartment in a project developed by Kindle…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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