# 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-05473. The case involves an application filed under Section 7 of the I&B Code, 2016, by Mr. Kashyap…

- **Court:** NCLT
- **Order date:** 9 Jun 2023
- **Citation:** TCN-2023-NCLT-05473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/ayg-realty-private-limited-cp-ib-no-1251-mb-iv-2020-9548f728

## Summary

### Background

The case involves an application filed under Section 7 of the I&B Code, 2016, by Mr. Kashyap Deorah, the 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

Mr. Kashyap Deorah filed an application under Section 7 of the I&B Code against AYG Realty Private Limited.

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

The Corporate Debtor and Financial Creditor entered into Consent Terms dated 18.11.2021.

The Corporate Debtor defaulted on the Consent Terms.

The Company Petition was initially dismissed on 24.03.2022 but was later revived.

The debt claimed arose from an MOU dated 12.03.2019, where the Corporate Debtor agreed to refund Rs. 4,00,00,000/-.

The last payment received by the Financial Creditor was of Rs.20,00,000 on 29.07.2022.

The Corporate Debtor has paid Rs. 3,95,00,000/- till date but was obligated to pay Rs. 7,11,00,000/- till 15.09.2019.

…

## Issues and analysis

### Issue 1: Whether the debt claimed by the Financial Creditor constitutes a 'financial debt' under Section …

**Ratio:** Yes, the debt arising from the MOU for the refund of the amount paid towards the purchase

…

**Reasoning:** The indexation contemplated in the consent is in the nature of the time value of money,

…

**Interpretation:** The Bench interpreted Section 5(8) of the I&B Code to include debts arising

…

**Application:** The Bench applied the definition of 'financial debt' under Section 5(8) to the

…

## Parties

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

## Timeline

- **2020-09-25 — Original Fili…**: Application being C.P. (IB) No.…
- **2022-01-05 — Special Power of…**: Special Power of Attorney dated 05.01.2018,…

## 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)

---

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-mumbai/ayg-realty-private-limited-cp-ib-no-1251-mb-iv-2020-9548f728