# South West Mining Limited vs. Mr. Bhuvan Madan (Resolution Professional) & Jaiprakash Associates Limited

> NCLT judgment dated 17 Mar 2026. Citation: TCN-2026-NCLT-00305. South West Mining Limited (Applicant) filed an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 17 Mar 2026
- **Citation:** TCN-2026-NCLT-00305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/south-west-mining-limited-vs-mr-bhuvan-madan-ljdyi

## Summary

### Background

South West Mining Limited (Applicant) filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016, against Mr. Bhuvan Madan, the Resolution Professional (RP) for Jaiprakash Associates Limited (Corporate Debtor). The Applicant had entered into an Agreement to Sell land with the Corporate Debtor on 21.10.2022 and advanced Rs. 6,00,00,000/-. The agreement was later amended on 18.10.2023, stipulating a refund with 10% interest upon termination. Following the Corporate Debtor's admission into Corporate Insolvency Resolution Process (CIRP) on 03.06.2024 and the RP's public announcement for claims, the Applicant submitted its claim for Rs. 6,37,21,311/- on 29.10.2024. The Applicant sought condonation for the

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## Facts

South West Mining Limited (Applicant) and Jaiprakash Associates Limited (Corporate Debtor) executed an Agreement to Sell land (Khasra No. 116, Village Kaun Khera, Agra) on 21.10.2022.

The total sale consideration was Rs. 17,81,64,000/-, and the Applicant advanced Rs. 6,00,00,000/- to the Corporate Debtor.

The Agreement to Sell was amended on 18.10.2023, extending its tenure and stipulating a refund of the advanced amount with 10% interest per annum upon expiry.

The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 03.06.2024, and Mr. Bhuvan Madan was appointed as Resolution Professional (RP).

The RP made a public announcement on 06.06.2024, inviting submission of claims from all creditors by 17.06.2024.

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## Issues and analysis

### Issue 1: Whether South West Mining Limited (Applicant) qualifies as a "Financial Creditor" under …

**Ratio:** For a claim to qualify as a financial debt under Section 5(8) of the IBC, the disbursal

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**Reasoning:** The amount of Rs. 6 Crores advanced by the Applicant was an advance consideration towards

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**Interpretation:** Section 5(8) of the Code requires a disbursal to be against the 'time value of

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**Application:** The Rs. 6 Crores advanced by South West Mining Limited was an advance for land

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** South West Mining…
- **Respondents:** Jaiprakash…; BHUVAN MADAN…
- **Other parties:** Insolvency and…; Corporate…; +10 more

## Timeline

- **21.10.2022 — Agreement t…**: Agreement to Sell executed between South West Mining Limited, Jaiprakash Associates…
- **18.10.2023 — Agreement Am…**: The Agreement to Sell was subsequently amended, extending its tenure and stipulating a…

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