# In the matter of Mather Projects Private Limited CP (IB) -3633-I&BP-MB-2018

> NCLT judgment dated 2018-11-30. Citation: TCN-2018-NCLT-00252. Mrs. Seema K. Nair and Mr. K. Vijaya Mohan Valiathan filed a petition seeking the Corporate…

- **Court:** NCLT
- **Order date:** 30 Nov 2018
- **Citation:** TCN-2018-NCLT-00252
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mather-projects-private-limited-cp-ib-3633-ibp-mb-2018-6f2291d5

## Summary

### Background

Mrs. Seema K. Nair and Mr. K. Vijaya Mohan Valiathan filed a petition seeking the Corporate Insolvency Resolution Process (CIRP) of Mather Projects Private Limited. The petitioners, being flat purchasers, claimed that the Corporate Debtor defaulted on 31.07.2018 to the extent of Rs. 70,98,746/- including interest. The petitioners had made payments towards a residential unit in a project named “HACIENDA” but did not receive possession as promised.

## Facts

Mrs. Seema K. Nair and Mr. K. Vijaya Mohan Valiathan, the Petitioners, sought the Corporate Insolvency Resolution Process (CIRP) against Mather Projects Private Limited, the Corporate Debtor. The Petitioners, as flat purchasers, made payments totaling Rs. 46,75,000/- in four tranches between 17.02.2014 and 19.06.2014 for a residential unit in the 'HACIENDA' project. The Corporate Debtor was to hand over possession by December 2014 but failed to do so. The total consideration payable under the land purchase agreement dated 26.02.2014 and the construction agreement dated 26.04.2014 was Rs. 57,52,912/-. The Petitioners, along with other allottees, approached HDFC Ltd. to stop EMI recovery but were unsuccessful. They then approached the Kerala State Consumer Disputes

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## Issues and analysis

### Issue 1: Whether the Petitioners qualify as Financial Creditors under the Insolvency and Bankruptcy Code, …

**Ratio:** Section 5(8) of the Code defines 'Financial Debt' to include any amount raised from an

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**Reasoning:** The court considered the provision of the Code and determined that the amounts paid by

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**Interpretation:** The interpretation of Section 5(8) clarifies that allottees in real estate

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**Application:** Since the Petitioners are allottees who advanced money to the Corporate Debtor

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Seema K.…
- **Respondents:** Mather Projects…

## Timeline

- **2014-02-17 — Payment Tra…**: First tranche of payment made by the…
- **2014-06-19 — Payment Tra…**: Final tranche of payment made by the…

## 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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