# In the matter of MSX Mall Pvt. Ltd. (IB)-334-(ND)-2018

> NCLT judgment dated 2018-07-09. Citation: TCN-2018-NCLT-01175. The petition was filed jointly by six petitioners under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Jul 2018
- **Citation:** TCN-2018-NCLT-01175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/msx-mall-pvt-ltd-ib-334-nd-2018-4b823b4e

## Summary

### Background

The petition was filed jointly by six petitioners under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be Financial Creditors. The petitioners sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against MSX Mall Pvt. Ltd., the Corporate Debtor, due to its inability to liquidate its financial debt. The petitioners had booked shops in a commercial project developed by the Corporate Debtor and were promised assured returns and a buy-back option. The Corporate Debtor defaulted on the assured returns and the buy-back option.

## Facts

Six petitioners jointly filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against MSX Mall Pvt. Ltd. The petitioners had booked shops in a commercial project developed by the Corporate Debtor. Petitioners 1 & 2 booked a shop, and petitioners 3-4 and 5-6 booked two other shops. Payments were made, and letters of allotment were issued, followed by addendums offering a buy-back option at an enhanced rate. The purchase rate was Rs. 8,000/- per sq. ft., and the buy-back rate was agreed at Rs. 9,120/- per sq. ft. The Corporate Debtor also agreed to pay an assured return of 12% for a maximum period of 4 years, payable by the 7th of every month. The Corporate Debtor defaulted on the assured returns. Financial Creditors 1 & 2 stated they did

…

## Issues and analysis

### Issue 1: Whether the claims of the petitioners qualify as 'financial debt' under Section 5(8) of the …

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

…

**Reasoning:** The court considered the arguments advanced by the Corporate Debtor's counsel that the

…

**Interpretation:** The court interpreted Section 5(8) of the IBC to include transactions that have

…

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

…

## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Ranjit…
- **Respondents:** MSX Mall Pv…; Alok K. Ag…

## Timeline

- **2010-12-30 — Addendum…**: Addendum dated 30th December, 2010,…
- **2011-01-22 — Allotment Let…**: Allotment letter issued to…

## 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)

---

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/msx-mall-pvt-ltd-ib-334-nd-2018-4b823b4e