# In the matter of Marathon Nextgen Realty Limited CP (IB) No.1042-MB-IV-2020

> NCLT judgment dated 2023-02-24. Citation: TCN-2023-NCLT-04462. The case involves an application filed by Innova Premises Co-operative Society Limited, the…

- **Court:** NCLT
- **Order date:** 24 Feb 2023
- **Citation:** TCN-2023-NCLT-04462
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/marathon-nextgen-realty-limited-cp-ib-no1042-mb-iv-2020-1aa8aa80

## Summary

### Background

The case involves an application filed by Innova Premises Co-operative Society Limited, the Financial Creditor/Applicant, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Marathon Nextgen Realty Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs.1,55,31,417/-, which was the surplus amount of corpus collected from its members for the maintenance of the building occupied by members of the society. The Corporate Debtor objected to the application, arguing that the amount due did not satisfy the conditions of Section 5 (8) (f) of the Code and that the responsibility for maintaining common layout amenities was carried out by the Corporate Debtor.

## Facts

Innova Premises Co-operative Society Limited, the Financial Creditor, filed an application under Section 7 of the I&B Code seeking initiation of CIRP against Marathon Nextgen Realty Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs.1,55,31,417/-, representing the surplus amount of corpus collected from its members for building maintenance. The members of the Applicant Society had entered into Premises Ownership Agreements and were handed over possession of their flats. The Corporate Debtor had received a 6-month deposit for a proportionate share of outgoings. The Corporate Debtor submitted collection and disbursement accounts, showing amounts payable to the proposed condominium. The Corporate Debtor raised debit notes towards allottees'

…

## Issues and analysis

### Issue 1: Whether the amount claimed by the Applicant constitutes a 'financial debt' under Section 5(8) of …

**Ratio:** A debt arising from the supply of goods or services, including advance payments for such

…

**Reasoning:** The court reasoned that the amount claimed by the Financial Creditor was collected for

…

**Interpretation:** The court interpreted the nature of the debt based on its purpose and origin.

…

**Application:** The court applied this principle to the specific facts, noting that the amount

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Innova Premises…
- **Respondents:** Marathon Nextgen…

## Timeline

- **2017-03-31 — Date of D…**: The Date of Default is stated to…
- **2020-02-12 — Petition…**: The Petition is filed…

## 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/marathon-nextgen-realty-limited-cp-ib-no1042-mb-iv-2020-1aa8aa80