# In the matter of Redtopaz Real Estate Pvt. Ltd. I.A. 2142-ND-2020 in Company Petition No. (IB)667(ND)-2019

> NCLT judgment dated 2020-08-26. Citation: TCN-2020-NCLT-00774. M/s. Renu Proptech Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 26 Aug 2020
- **Citation:** TCN-2020-NCLT-00774
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/redtopaz-real-estate-pvt-ltd-ia-2142-nd-2020-in-company-petition-no-ib667nd-2019-cb68ddff

## Summary

### Background

M/s. Renu Proptech Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Red Topaz Real Estate Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 23.08.2019, and Mr. Vekas Kumar Garg was appointed as the Interim Resolution Professional (IRP). The applicants, Abhishek Garg, Anita Garg, Neha Garg, and Parul Mittal, filed IA No. 2142/2020 seeking to be included as Financial Creditors in a class, arguing they invested in the corporate debtor's project 'NINEX MALL' in 2015 and were allotted units. A Memorandum of Understanding (MoU) dated 10.06.2019 and an addendum dated 12.06.2019 were executed, but the applicants' claims were not treated as 'Financial Creditor in Class' by the Resolution

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## Facts

In 2015, the Corporate Debtor, M/s. Red Topaz Real Estate Pvt. Ltd., approached Abhishek Garg, Anita Garg, Neha Garg, and Parul Mittal (the Applicants) to invest in its 'NINEX MALL' project in Gurugram. The Applicants invested money and were allotted various units. A Memorandum of Understanding (MoU) dated 10.06.2019, and an addendum dated 12.06.2019, were executed. The Applicants claim they were promised service apartments in lieu of the originally allotted units, but no allotment letters were issued for the service apartments. The Financial Creditor, M/s Renu Proptech Pvt. Ltd., initiated CIRP against the Corporate Debtor, and the application was admitted on 23.08.2019. The Resolution Professional (RP) did not treat the Applicants as 'Financial Creditor in Class',

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## Issues and analysis

### Issue 1: Whether the claim of the Applicants shall be admitted as 'independent Financial Creditor' or a …

**Ratio:** The definition of 'allottee' under Section 2(d) of the Real Estate (Regulation &

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**Reasoning:** The court reasoned that since the letters of allotment were issued in favor of the

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**Interpretation:** The court interpreted that the applicants, being allottees of commercial units,

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**Application:** The court applied the definition of 'allottee' to the facts of the case, noting

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## Parties

- **Judges:** Ch. Mohd Sharief…; Shri. L. N.…
- **Appellants:** Abhishek…
- **Respondents:** Red Topaz Real…; Vekas Kuma…
- **Advocates:** Piyush…; Aditya Pa…; +4 more

## Timeline

- **2015-01-01 — Investment in N…**: The Corporate Debtor approached the Applicants to invest in its project “NINEX MALL"…
- **2019-06-10 — Memorandum of…**: The Corporate Debtor and the Applicants…

## 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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