# In the matter of NCL Holdings (A&S) Limited

> NCLT judgment dated 2025-02-19. Citation: TCN-2025-NCLT-00460. M/s. RKM Land Promoters Pvt. Ltd., an operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 19 Feb 2025
- **Citation:** TCN-2025-NCLT-00460
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ncl-holdings-as-limited-d432f70e

## Summary

### Background

M/s. RKM Land Promoters Pvt. Ltd., an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. NCL Holdings (A&S) Limited, the corporate debtor, for defaulting on an operational debt of Rs. 9,10,00,000. The operational creditor claimed to have made advance payments for a land sale agreement that did not materialize, and the corporate debtor allegedly sold the property to a third party without their knowledge. The corporate debtor denied the allegations, claiming the issues were civil in nature and that there was no enforceable contract.

## Facts

M/s. RKM Land Promoters Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the IBC against M/s. NCL Holdings (A&S) Limited (Corporate Debtor) for an alleged default of Rs. 9,10,00,000. The Operational Creditor claimed to have paid Rs. 24,47,09,900 between January 2021 and July 2022, followed by an advance of Rs. 9,10,00,000 on 27.07.2022, to the Corporate Debtor for a land sale agreement involving 2,87,894 sq. ft. of land in Achittipalli village, Krishnagiri. The Corporate Debtor allegedly sold the property to a third party without the Operational Creditor's knowledge. The Operational Creditor issued a legal notice on 14.02.2023, followed by a Form-3 Demand Notice, after the Corporate Debtor denied liability on 15.03.2023. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether an operational debt for sum of Rs.9,10,00,000/- crores due and payable by the …

**Ratio:** To qualify as an Operational Creditor, the debt must be traceable from a contract for the

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**Reasoning:** The NCLT observed that the Operational Creditor was not a party to the General Power of

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**Interpretation:** The definition of 'operational creditor' and 'operational debt' under the IBC

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**Application:** The NCLT found that the advance payment could not be deemed as an advance for

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s. RKM Land…
- **Respondents:** M/s NCL Holdings…

## Timeline

- **2021-01-01 — Payments by Operational…**: Operational Creditor paid Rs.24,47,09,900/- through various transactions from January,…
- **2022-07-27 — Advance P…**: Operational Creditor paid an advance…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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