# In the matter of AYG Realty Private Limited CP (IB) No. 1251-MB-IV-2020

> NCLT judgment dated 2023-06-09. Citation: TCN-2023-NCLT-05468. The case involves an application filed under Section 7 of the I&B Code, 2016, by Kashyap…

- **Court:** NCLT
- **Order date:** 9 Jun 2023
- **Citation:** TCN-2023-NCLT-05468
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/ayg-realty-private-limited-cp-ib-no-1251-mb-iv-2020-16b88d28

## Summary

### Background

The case involves an application filed under Section 7 of the I&B Code, 2016, by Kashyap Deorah, a Financial Creditor/Applicant, against AYG Realty Private Limited, the Corporate Debtor/Respondent, for initiating Corporate Insolvency Resolution Process (CIRP). The application was originally filed on 25.09.2020 and restored on 01.08.2022.

## Facts

The application was filed under Section 7 of the I&B Code, 2016.

The Financial Creditor/Applicant is Mr. Kashyap Deorah.

The Corporate Debtor/Respondent is AYG Realty Private Limited.

The application was originally filed on 25.09.2020 and restored on 01.08.2022.

Consent Terms were recorded on 18.11.2021 between the parties.

The Company Petition was initially dismissed on 24.03.2022.

The Applicant challenged the dismissal order before the NCLAT.

The NCLAT granted liberty to file for revival of the Section 7 application on 07.07.2022.

The Bench allowed the restoration of the main Company Petition on 09.11.2022.

The Bench allowed the Petitioner to amend the Petition regarding the date of default on 12.04.2023.

The first date of default is stated to be 27.02.2019.

…

## Issues and analysis

### Issue 1: Whether there exists a 'financial debt' …

**Ratio:** The debt under the Consent term was a financial debt in the nature of the amount paid

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**Reasoning:** The indexation contemplated in the said

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**Interpretation:** The Bench considered that there exists a financial debt, in repayment of which

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**Application:** The Bench applied the definition of financial debt under Sec. 5(8) to the facts

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Kashyap D…
- **Respondents:** AYG Realty…
- **Other parties:** Adesh Kumar…
- **Advocates:** Yashodhan D…; Rohit G…; +1 more

## Timeline

- **2020-09-25 — Application…**: Application being C.P. (IB) No.…
- **2022-08-01 — Application R…**: Application r…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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