# In the matter of Metcalfe Properties Private Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01038. Naman Infradevelopers Private Limited, the Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01038
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/metcalfe-properties-private-limited-a1a20a50

## 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 stemmed from a transaction where the Financial Creditor intended to purchase residential plots in a project by the Corporate Debtor. An agreement to sell was executed in March 2012, with advance payments made. However, the Corporate Debtor failed to execute the sale deed, leading to disputes and a settlement agreement in April 2022. The Corporate Debtor defaulted on the settlement terms, prompting the Financial Creditor to file the Section 7 application.

## Facts

Naman Infradevelopers Private Limited (Financial Creditor) sought to initiate CIRP against Metcalfe Properties Private Limited (Corporate Debtor) under Section 7 of IBC. The Financial Creditor intended to purchase residential plots in a PUDA-approved colony named Metcalfe Nirvana, developed by the Corporate Debtor. An agreement to sell was executed on March 10, 2012, with the total sale consideration agreed at Rs. 9,90,62,170/-. The Financial Creditor made an advance payment of Rs. 5 Crore on March 1, 2012. 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

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## Issues and analysis

### Issue 1: Whether the applicant, Naman Infradevelopers Private Limited, qualifies as a 'Financial Creditor' …

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

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**Reasoning:** The Adjudicating Authority reasoned that the money advanced by the applicant was not

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**Interpretation:** The interpretation of 'Financial Creditor' hinges on whether the debt arises

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**Application:** In this case, the applicant's intent was deemed speculative, as they were

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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…**: Financial Creditor made an…

## 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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