# In the matter of Logix City Developers Private Limited

> NCLT judgment dated 2024-01-09. Citation: TCN-2024-NCLT-03238. The case involves an application (IA-3777/2023) filed under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Jan 2024
- **Citation:** TCN-2024-NCLT-03238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/logix-city-developers-private-limited-6b77e544

## Summary

### Background

The case involves an application (IA-3777/2023) filed under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016. The applicant, Colliers International India Property Pvt. Ltd. (formerly Synergy Property Development Services Private Limited), sought directions from the Adjudicating Authority regarding the verification and admission of its claims against the Corporate Debtor, M/s. Logix City Developers Private Limited. The applicant claimed to be both an operational creditor and a financial creditor. The initial application under Section 7 of the IBC filed by Mr. Anil Kaushal & Ors. (Financial Creditors) against the Corporate Debtor was admitted, and a moratorium was declared. The applicant had entered into an

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## Facts

1. An application under Section 60(5) of the Code, 2016 read with Rule 11 of the NCLT Rules, 2016 was filed by the Applicant/ Allottees.
2. An application under section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") was filed by the Financial Creditors i.e., Mr. Anil Kaushal & Ors. against the Corporate Debtor i.e., M/s. Logix City Developers Private Limited and the said application was admitted by the order of this Adjudicating Authority vide order dated 17.08.2022 and a moratorium was declared including the appointment of Mr. Manohar Lal Vij as an Interim Resolution Professional.
3. On 05.07.2011 Synergy Property Development Services Private Limited (now merged with Applicant) entered into an Agreement with the Corporate Debtor for providing

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## Issues and analysis

### Issue 1: Whether the claim of the Applicant should be classified as Financial Debt or Operational Debt under …

**Ratio:** The essential element for a debt to be considered a 'financial debt' under Section 5(8)

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**Reasoning:** The court reasoned that in the present case, the operational debt was adjusted for the

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**Interpretation:** The interpretation of Section 5(8) of the IBC, as clarified by the Supreme

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** COLLIERS INTERNATI…
- **Respondents:** LOGIX CITY…; RESOLUTION…

## Timeline

- **2022-08-17 — Moratorium D…**: Moratorium was declared including the appointment of Mr. Manohar Lal Vij as an Interim…
- **2011-07-05 — Agreement with…**: Synergy Property Development Services Private Limited (now merged with Applicant) entered…

## 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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