# In the matter of Siddhivinayak Skyscrapers Private Limited CP (IB) No. 1155-MB-IV-2020

> NCLT judgment dated 2023-04-12. Citation: TCN-2023-NCLT-03822. RSM Infra Partners, the Operational Creditor/Applicant, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 12 Apr 2023
- **Citation:** TCN-2023-NCLT-03822
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siddhivinayak-skyscrapers-private-limited-cp-ib-no-1155-mb-iv-2020-9fd9155c

## Summary

### Background

RSM Infra Partners, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Siddhivinayak Skyscrapers Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The application, C.P. (IB) No. 1155/MB-IV/2020, was filed on 24.07.2020. The Operational Creditor and Corporate Debtor had entered into a Memorandum of Agreement (MOA) on 02.08.2016 for the assignment of rights of lease in a plot of land. The default date mentioned in the application is 15.01.2020. The Corporate Debtor failed to fulfill its obligations under the MOU, leading to the application for CIRP.

## Facts

RSM Infra Partners (Operational Creditor) and Siddhivinayak Skyscrapers Private Limited (Corporate Debtor) entered into a Memorandum of Agreement (MOA) on 02.08.2016 for the assignment of lease rights in a plot of land. The Corporate Debtor was to purchase the plot from Kuber Builders, who had acquired leasehold rights from CIDCO. The Corporate Debtor agreed to pay Kuber Rs. 97 crores for the land. The Operational Creditor was to step into Kuber's shoes as the prospective lessee, with a consideration of Rs. 40 crores payable to the Corporate Debtor. The Operational Creditor paid Rs. 1 crore to the Corporate Debtor towards the transaction. The Corporate Debtor failed to introduce the Operational Creditor as a nominee in the Sessions Court proceedings or execute a

…

## Issues and analysis

### Issue 1: Whether the amount claimed by the Operational Creditor qualifies as an 'operational debt' under …

**Ratio:** An operational debt is defined under Section 5(21) of the Insolvency and Bankruptcy Code,

…

**Reasoning:** The NCLT reasoned that the amount claimed by the Operational Creditor was an advance

…

**Interpretation:** The court interpreted Section 5(21) strictly, emphasizing that the debt must

…

**Application:** The court applied the definition of operational debt to the facts of the case,

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** RSM Infra P…
- **Respondents:** Siddhivinayak…

## Timeline

- **2016-08-02 — Execution of Memorandum…**: The Operational Creditor and Corporate Debtor executed a Memorandum of Agreement (MOA)…
- **2020-01-15 — Date of D…**: The date of default as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siddhivinayak-skyscrapers-private-limited-cp-ib-no-1155-mb-iv-2020-9fd9155c