# In the matter of Unrivalled Projects Private Limited

> NCLT judgment dated 2023-05-08. Citation: TCN-2023-NCLT-03461. Raiyan Hotels and Resorts Pvt. Ltd. filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 May 2023
- **Citation:** TCN-2023-NCLT-03461
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unrivalled-projects-private-limited-56686f91

## Summary

### Background

Raiyan Hotels and Resorts Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) as a financial creditor against Unrivalled Projects Private Limited (UPPL), claiming unpaid consideration for the purchase of an immovable property. The alleged claim arises from a sale agreement where UPPL purchased property at 5A, Royd Street, Kolkata, from Raiyan Hotels. The corporate debtor, UPPL, contends that the entire consideration amount has been paid, while the financial creditor disputes this. The matter was referred to a third member due to a difference of opinion between the initial members of the NCLT bench.

## Facts

Raiyan Hotels and Resorts Pvt. Ltd. (the Applicant) claimed to be a financial creditor of Unrivalled Projects Private Limited (UPPL) (the Respondent). The claim arose from an alleged unpaid consideration for the purchase of an immovable property at 5A, Royd Street, Kolkata. An indenture (sale agreement) was entered into between the Applicant and the Respondent on 2014-09-27 for a total consideration of Rs. 21,60,000. The Applicant claimed that the Respondent defaulted in making payments as per the schedule in the sale agreement. The Applicant claimed a financial debt of Rs. 13,24,14,700 as of 2020-05-01, with the date of default being 2017-12-28, which is the date of acknowledgement of liability and payment of Rs. 1,00,000 to the Financial Creditor. The Respondent

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## Issues and analysis

### Issue 1: Whether the claim of Raiyan Hotels constitutes a …

**Ratio:** A 'financial debt' under Section 5(8) of the IBC requires a disbursement against the

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**Reasoning:** The third member reasoned that the alleged balance of sale consideration does not

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8) of the IBC requires a

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**Application:** In this case, the claim of Raiyan Hotels arises from an unpaid sale

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## Parties

- **Judges:** BIDISHA BA…
- **Appellants:** Raiyan Hotels and…
- **Respondents:** Unrivalled…
- **Advocates:** Dhruva Muk…; Kumar Anura…; +9 more

## Timeline

- **2014-09-27 — Sale Agre…**: Indenture (sale agreement) was entered into between Raiyan Hotels and Resorts Pvt. Ltd.…
- **2017-12-28 — Alleged Date o…**: Raiyan Hotels and Resorts Pvt. Ltd. claimed the date of default was 2017-12-28, which is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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