# In the matter of Raheja Developers Limited C.A.-1416(PB)-2020 in C.P. (IB)-408(PB)-2019

> NCLT judgment dated 2023-05-12. Citation: TCN-2023-NCLT-03377. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raheja-developers-limited-ca-1416pb-2020-in-cp-ib-408pb-2019-3fcd5e19

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Mrs. Mohinder Pal Singh Gill, an operational creditor, against Raheja Developers Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to a default amount of Rs. 3,03,30,000/- as of 30.09.2018. The debt arose from a Collaboration Agreement and subsequent Memorandum of Understanding (MOU) related to a real estate development project. The applicant, along with other landowners, had agreed to permit the corporate debtor to develop their land in exchange for a share of the revenue. Another application, No. 1416(PB)/2020, was filed by the applicant under Rule 11 of the NCLT Rules, 2016, seeking relisting of the captioned

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## Facts

Mrs. Mohinder Pal Singh Gill, the applicant, along with other landowners, entered into a Collaboration Agreement dated 13.08.2012 with Raheja Developers Limited, the corporate debtor, for the development of land. This agreement was later amended by a Supplementary Collaboration Agreement dated 25.06.2013. A revised understanding was reached through an MOU dated 07.10.2016, where the landowners agreed to permit the corporate debtor to construct, develop, maintain, and sell their share of the land. As per the MOU, the corporate debtor agreed to pay certain amounts to the landowners, including a revenue sharing arrangement. The applicant claimed a default amount of Rs. 3,03,30,000/- as of 30.09.2018. The corporate debtor was incorporated on 27.11.1990. The applicant

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## Issues and analysis

### Issue 1: Whether the dues to Land owners under collaboration agreements read with agreement dated 25.10.2016 …

**Ratio:** The legal principle applied is the definition of 'Operational Debt' under Section 5(21)

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**Reasoning:** The court reasoned that the agreement was in the nature of a joint development project

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**Interpretation:** The interpretation of 'Operational Debt' was central to the case. The court

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Mohinder Pal…
- **Respondents:** Raheja Developers…

## Timeline

- **2012-08-13 — Collaboration…**: Applicant along with three land owners executed a Collaboration Agreement with Corporate…
- **2013-06-25 — Supplementary…**: Collaboration Agreement was further amended…

## 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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