# In the matter of Om Shakthy Agencies (Madras)Private Limited CP(IB)-146(CHE)-2022

> NCLT judgment dated 2023-02-13. Citation: TCN-2023-NCLT-04608. The case involves an application filed by Mahindra World City Developers Limited (Operational…

- **Court:** NCLT
- **Order date:** 13 Feb 2023
- **Citation:** TCN-2023-NCLT-04608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/om-shakthy-agencies-madrasprivate-limited-cpib-146che-2022-9dcd78b8

## Summary

### Background

The case involves an application filed by Mahindra World City Developers Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Om Shakthy Agencies (Madras) Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor entered into a Land Procurement Agreement dated 20.12.2007, which was amended till 21.07.2011, where the Corporate Debtor was to procure 1000 acres of patta land. The Operational Creditor made an advance secured by a mortgage. As of 31.12.2013, the Corporate Debtor had acquired only 527 acres. The Operational Creditor claimed Rs.70,63,07,704/-, including principal of Rs.32,26,22,500/- and interest of Rs.38,36,85,204/-, with

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## Facts

Mahindra World City Developers Limited (Operational Creditor) filed an application against Om Shakthy Agencies (Madras) Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor and the Corporate Debtor entered into a Land Procurement Agreement on 20.12.2007, amended until 21.07.2011, where the Corporate Debtor was to procure 1000 acres of patta land. The Operational Creditor made an advance to the Corporate Debtor, secured by a mortgage. By 31.12.2013, the Corporate Debtor had acquired only 527 acres. The Operational Creditor claimed Rs.70,63,07,704/-, including principal of Rs.32,26,22,500/- and interest of Rs.38,36,85,204/-, with the date of default being 08.06.2018. The Corporate Debtor, in a letter

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## Issues and analysis

### Issue 1: Whether the Applicant is …

**Ratio:** The Hon'ble Supreme Court of India in Consolidated Construction Consortium Limited Vs.

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**Reasoning:** The Adjudicating Authority reasoned that the Applicant received services from the

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**Interpretation:** Section 5(20) of the IBC defines an operational creditor as a person to whom an

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**Application:** The Applicant, Mahindra World City Developers Limited, received services from

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## Parties

- **Judges:** DEEPTI M…; SAMEER…
- **Appellants:** Mahindra World…
- **Respondents:** Om Shakthy…

## Timeline

- **2007-12-20 — Land Procurement…**: Operational Creditor and Corporate Debtor…
- **2011-07-21 — Amendment to A…**: Land Procurement Agreement…

## 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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