# Bhushan Power and Steel Limited vs. Atma Ram House Investment Private Limited

> NCLT judgment dated 12 Nov 2025. Citation: TCN-2025-NCLT-01676. Bhushan Power and Steel Limited (Applicant/Financial Creditor) filed IB-128/(PB)/2024…

- **Court:** NCLT
- **Order date:** 12 Nov 2025
- **Citation:** TCN-2025-NCLT-01676
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/bhushan-power-and-steel-limited-vs-atma-ram-house-investment-private-limited-7f5fc321

## Summary

### Background

Bhushan Power and Steel Limited (Applicant/Financial Creditor) filed IB-128/(PB)/2024 initiating CIRP against Atma Ram House Investment Private Limited (CD/Respondent). The Applicant and the Respondent entered into a Memorandum of Understanding (MoU) dated 01.04.2008, where the Applicant agreed to disburse up to INR 140,00,00,000 to the Respondent as an advance for the purchase price of commercial flats/floor/space, which was to be adjusted in the future. The Applicant disbursed INR 136.92 Crores. As the Corporate Debtor could not complete construction, the parties renewed terms with a fresh MoU dated 01.04.2013, extending the construction period by five years until 01.04.2018.

## Facts

Bhushan Power and Steel Limited (Applicant) initiated CIRP against Atma Ram House Investment Private Limited (Respondent) under IB-128/(PB)/2024.

The Applicant and Respondent entered into a Memorandum of Understanding (MoU) on 01.04.2008.

The Applicant agreed to disburse an amount up to INR 140,00,00,000 to the Respondent as an advance.

The advance was to be adjusted against the purchase price of commercial flats/floor/space.

The Applicant disbursed an amount of INR 136.92 Crores to the Respondent.

The Corporate Debtor could not complete construction within the period provided in the MoU.

The parties renewed the terms by entering into a fresh MoU dated 01.04.2013, extending the construction period until 01.04.2018.

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## Issues and analysis

### Issue 1: Whether the disbursed amount constitutes a …

**Ratio:** Amounts covered by security deposits under agreements constitute financial debt.

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**Reasoning:** The Hon'ble Supreme Court has held that amounts covered by security deposits can

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**Interpretation:** Financial debt includes debt along with interest if any and which is disbursed

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**Application:** The Tribunal applied the principles established by the Supreme Court and NCLAT,

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## Parties

- **Judges:** Sh. Ashok Kumar…; RAVINDRA CHATURVED…
- **Appellants:** Bhushan Power &…
- **Respondents:** Atma Ram House…
- **Other parties:** Corporate…; Financial…; +4 more
- **Advocates:** Pinaki M…; J. Sivanan…; +10 more

## Timeline

- **2008-04-01 — Memorandum of…**: Applicant and Respondent entered into a MoU where the applicant agreed to disburse amount…
- **2013-04-01 — Fresh Memorandum of…**: Parties renew terms with fresh MoU extending construction period by five years until…

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