# In the matter of Sanskar Projects and Housing Ltd.

> NCLT judgment dated 2023-02-14. Citation: TCN-2023-NCLT-04607. M/s Realpro Realty Solutions Pvt. Ltd. filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 14 Feb 2023
- **Citation:** TCN-2023-NCLT-04607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanskar-projects-and-housing-ltd-eae3f9e7

## Summary

### Background

M/s Realpro Realty Solutions Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Sanskar Projects and Housing Ltd. The applicant claimed to be a financial creditor based on an agreement where they agreed to invest in a joint project for the acquisition and development of property, sharing profits in a 25:75 ratio with the respondent. The respondent allegedly defaulted on payments, leading to the application.

## Facts

Dr. Chetan Prakash, the owner of a property in New Delhi, entered into a Memorandum of Understanding (MOU) with M/s Sanskar Projects and Housing Ltd (Respondent) for the transfer of ownership rights of the second floor and terrace of his property. Subsequently, the Respondent entered into an agreement with M/s Realpro Realty Solutions Pvt. Ltd (Applicant) for joint acquisition and development of the property, with a profit-sharing ratio of 75:25. The total investment was agreed to be Rs. 35,00,00,000, with the Applicant contributing Rs. 8,75,00,000. The Respondent sold the roof rights to Ms. Seema Jindal for Rs. 21,00,00,000. The Applicant claimed that it was entitled to 25% of this amount, but the Respondent only paid a portion. The Applicant filed an application

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## Issues and analysis

### Issue 1: Whether the Applicant qualifies as a 'financial creditor' 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 court reasoned that the nature of the agreement was a joint investment for

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**Interpretation:** The interpretation of 'financial creditor' hinges on the existence of a

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**Application:** The court applied the definition of 'financial creditor' to the facts, finding

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** M/s Realpro…
- **Respondents:** M/s Sanskar…

## Timeline

- **2020-11-20 — MOU between Dr. Chetan…**: Dr. Chetan Prakash entered into an MOU with the Respondent for the transfer of ownership…
- **2020-12-09 — Agreement between…**: The Applicant and Respondent entered into an agreement for joint acquisition and…

## 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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