# In the matter of Abloom Infotech Pvt. Ltd. I.A. 2435-2021 in Company Petition No. (IB) – 2115-(ND)-2019

> NCLT judgment dated 2023-02-14. Citation: TCN-2023-NCLT-04606. This case involves an application (I.A. 2435/2021) filed by M/S Chandgi Ram Real Estate…

- **Court:** NCLT
- **Order date:** 14 Feb 2023
- **Citation:** TCN-2023-NCLT-04606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abloom-infotech-pvt-ltd-ia-2435-2021-in-company-petition-no-ib-2115-nd-2019-e60315b9

## Summary

### Background

This case involves an application (I.A. 2435/2021) filed by M/S Chandgi Ram Real Estate Consultants Pvt. Ltd. (Applicant/Financial Creditor) in a corporate insolvency resolution process (CIRP) against M/S Abloom Infotech Pvt. Ltd. (Corporate Debtor). The applicant sought the acceptance of its claim of Rs. 16,13,96,119/- as a financial debt and its classification as a financial creditor. The Resolution Professional (RP) had rejected the applicant's claim, classifying it as 'Other Creditors' and admitting only a portion of the claim (Rs. 5,66,00,000/-). The applicant contested this decision, arguing that the debt qualifies as a financial debt based on a Term Sheet and Memorandum of Understanding (MoU) with the Corporate Debtor and its shareholders. DMI Finance Private

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## Facts

M/S Chandgi Ram Real Estate Consultants Pvt. Ltd. (Applicant) claimed to be a financial creditor of M/S Abloom Infotech Pvt. Ltd. (Corporate Debtor) for Rs. 16,13,96,119/-. The claim was based on a Term Sheet and MoU between the Applicant, the Corporate Debtor's shareholders, and the Corporate Debtor itself. The Applicant had provided funds to the Corporate Debtor as a refundable non-interest-bearing security deposit for the co-development of an IT Park. The Corporate Debtor was under an embargo from DMI Finance Private Limited (Respondent 2), restricting it from entering into agreements without DMI Finance's consent. The Resolution Professional (RP) initially rejected the Applicant's claim as a financial debt, classifying it as 'Other Debt' and admitting only Rs.

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## Issues and analysis

### Issue 1: Whether the debt claimed by M/S Chandgi Ram Real Estate Consultants Pvt. Ltd. qualifies as a …

**Ratio:** Section 5(8) of the IBC defines 'financial debt' as a debt along with interest, if any,

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**Reasoning:** The NCLT reasoned that the funds provided by the applicant were in the nature of a

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**Interpretation:** The interpretation of Section 5(8) hinges on the presence of 'time value of

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**Application:** In this specific case, the NCLT applied the definition of 'financial debt' to

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## Parties

- **Judges:** RAHUL BHA…; BACHU VENKAT…
- **Appellants:** M/S Chandgi Ram…
- **Respondents:** M/S Abloom…; IRP MR. PARVEEN…
- **Advocates:** Farrukh…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No. (IB) –…
- **2019-02-11 — Term Sheet…**: Term Sheet and Memorandum of Understanding (MoU) dated 11.02.2019 were executed between…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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