# In the matter of Metcalfe Properties Private Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01061. Naman Infradevelopers Private Limited, the Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01061
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/metcalfe-properties-private-limited-603d51f9

## Summary

### Background

Naman Infradevelopers Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Metcalfe Properties Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's alleged default in payment of Rs. 16,11,22,835 as of 31.07.2022. The Financial Creditor had initially approached the Corporate Debtor to purchase residential plots in a PUDA-approved colony named Metcalfe Nirvana. An agreement to sell was executed in March 2012, with an advance payment made by the Financial Creditor. However, the Corporate Debtor failed to execute the sale deed, leading to disputes and a settlement agreement in April 2022,

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## Facts

Naman Infradevelopers Private Limited (Financial Creditor) sought to initiate CIRP against Metcalfe Properties Private Limited (Corporate Debtor) for a default of Rs. 16,11,22,835 as of 31.07.2022. The Financial Creditor intended to buy residential plots in Metcalfe Nirvana, a PUDA-approved colony. An agreement to sell was executed on 10.03.2012, and an advance payment of Rs. 5 Crore was made. The Corporate Debtor was to execute the sale deed by March 2013, failing which it was liable to return the amount with 24% interest. The Corporate Debtor failed to effect the registry, and the Financial Creditor sent reminder letters. The Corporate Debtor transferred Rs.1,78,38,200.00 during 2020 and 2021, with Rs.3,21,61,800.00 still outstanding as of 10.08.2021. The Financial

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## Issues and analysis

### Issue 1: Whether the applicant is a Financial Creditor as defined under Section 5(7) of the Insolvency and …

**Ratio:** A Financial Creditor is defined under Section 5(7) of the IBC as a person to whom a

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**Reasoning:** The Adjudicating Authority reasoned that the applicant's status as a Financial Creditor

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**Interpretation:** The interpretation of Section 5(7) requires that the debt must be a 'financial

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**Application:** In this case, the money was advanced for the purchase of land and not as a

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; BINOD KUMAR…
- **Appellants:** Naman Infradevelop…
- **Respondents:** Metcalfe Propertie…; Metcalfe Propertie…

## Timeline

- **2012-03-10 — Agreement t…**: Corporate Debtor and Financial…
- **2012-03-01 — Advance P…**: Advance payment of Rs. 5 Crore was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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