# In the matter of Harihar Infraventures (India) Pvt. Ltd. C.P. (IB) No. 88 of 2021

> NCLT judgment dated 2023-03-15. Citation: TCN-2023-NCLT-04246. The case involves a Company Petition filed by financial creditors against Harihar Infra…

- **Court:** NCLT
- **Order date:** 15 Mar 2023
- **Citation:** TCN-2023-NCLT-04246
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/harihar-infraventures-india-pvt-ltd-cp-ib-no-88-of-2021-9704e99d

## Summary

### Background

The case involves a Company Petition filed by financial creditors against Harihar Infra Ventures (I) Pvt Ltd, the corporate debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors are individuals who purchased flats from the corporate debtor. Disputes arose when the corporate debtor failed to deliver possession of the flats as per the agreements. To compensate, a Leave and License Agreement was entered into, with the corporate debtor agreeing to pay a license fee. However, the corporate debtor defaulted on payments, leading the financial creditors to file a petition seeking a refund of the sale consideration. During the proceedings, the parties entered into Consent

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## Facts

Mrs. Kakumanu Lakshmi and others, the financial creditors, filed a Company Petition against Harihar Infra Ventures (I) Pvt Ltd, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors had purchased flats in a project called 'Sai Hermitage' from the corporate debtor and registered agreements. The corporate debtor failed to provide possession of the flats on time. To compensate, a Leave and License Agreement was entered into, with the corporate debtor agreeing to pay a license fee. The corporate debtor defaulted on payments, leading the financial creditors to file a Company Petition No. 2910 of 2019 seeking a refund of the sale consideration. During the proceedings, the parties entered into Consent Terms on 11.12.2019,

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## Issues and analysis

### Issue 1: Whether the applicants qualify as financial creditors under the Insolvency and Bankruptcy Code, …

**Ratio:** A debt which is payable by the Corporate Debtor can be termed as financial debt as the

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**Reasoning:** The court reasoned that the Leave & License Agreement was entered into as a means of

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**Interpretation:** The court interpreted that the settlement agreement/consent terms were entered

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**Application:** The court applied this ratio to the facts by stating that the amount claimed is

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Kakumanu L…
- **Respondents:** Harihar Infra…

## Timeline

- **2019-12-11 — Consent Terms…**: Parties entered into Consent Terms where the Corporate Debtor agreed to pay Rs.…
- **2020-01-28 — First Chequ…**: First installment cheque…

## 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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