# In the matter of JM Collection Pvt. Ltd.

> NCLT judgment dated 2024-03-20. Citation: TCN-2024-NCLT-02015. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 20 Mar 2024
- **Citation:** TCN-2024-NCLT-02015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jm-collection-pvt-ltd-ed63b048

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by an individual based on a memorandum of understanding dated 25.02.2024 entered into by the Corporate Debtor for making a short-term investment of Rs. 1,10,00,000/- with the Corporate Debtor.

## Facts

An individual filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, based on a memorandum of understanding (MOU) dated 2024-02-25. The MOU was entered into by the Corporate Debtor for a short-term investment of Rs. 1,10,00,000/- with the Corporate Debtor. The NCLT examined whether the applicant met the criteria to be considered a Financial Creditor under Sub Section 7 of Section 5 of the IBC, 2016, and whether the investment amount qualified as a financial debt under Sub Section 7 of Section 5 of the Code. The NCLT found that the applicant did not meet the requirements to be a Financial Creditor and that the investment amount did not qualify as a financial debt.

## Issues and analysis

### Issue 1: Whether the applicant fulfills the ingredients of being a Financial Creditor under the definition …

**Ratio:** The legal principle is based on the definition of a Financial Creditor as outlined in Sub

…

**Reasoning:** The court reasoned that the applicant did not provide sufficient evidence or arguments to

…

**Interpretation:** The interpretation of the legal issue involves understanding the specific

…

**Application:** In this specific case, the court applied the definition of a Financial Creditor

…

## Parties

- **Judges:** SH. BACHU VENKAT…; SH. ATUL CHATURVED…
- **Appellants:** RAHUL K…
- **Respondents:** M/S JM COLLECTION…

## Timeline

- **2024-02-25 — Memorandum of…**: A memorandum of understanding was entered into by the Corporate Debtor for making short…
- **2024-03-20 — Order Del…**: Order delivered by the NCLT…

## 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-division-bench-court-i-chenn/jm-collection-pvt-ltd-ed63b048