# In the matter of Radius & Deserve Builders LLP

> NCLT judgment dated 2025-11-07. Citation: TCN-2025-NCLT-01746. Capacite Infraprojects Limited filed an application seeking to be classified as a 'financial…

- **Court:** NCLT
- **Order date:** 7 Nov 2025
- **Citation:** TCN-2025-NCLT-01746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/radius-deserve-builders-llp-f45cf5b4

## Summary

### Background

Capacite Infraprojects Limited filed an application seeking to be classified as a 'financial creditor in a class - homebuyer' instead of 'other creditors'. The applicant was initially a contractor for the Corporate Debtor, Radius & Deserve Builders LLP, and later agreed to accept 10 flats as settlement for outstanding dues.

## Facts

Capacite Infraprojects Limited was engaged as a contractor by Radius & Deserve Builders LLP.

The Corporate Debtor agreed to pay Rs. 6 crores to the Applicant as per Settlement Terms dated 02.02.2018.

The Corporate Debtor paid Rs. 4,98,00,000 to the Applicant.

The Corporate Debtor offered to transfer 10 flats in project “Anantya” Chembur in favour of the Applicant as settlement.

The Applicant initially did not accept the offer of flats but later agreed to it and withdrew a Section 9 petition.

The Corporate Debtor was admitted into insolvency proceedings on 27.09.2023.

The Applicant submitted a claim in Form CA as Financial Creditor in Class (Homebuyers).

The RP categorized the Applicant as ‘other creditors’.

The Applicant relies on the definition of ‘allottee' under RERA.

…

## Issues and analysis

### Issue 1: Whether the applicant, initially an operational creditor, can be classified as a financial creditor …

**Ratio:** An operational creditor cannot be converted into a financial creditor by way of a

…

**Reasoning:** The NCLT relied on the judgment of Pioneer Urban Land and Infrastructure Ltd. v. Union of

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**Interpretation:** The explanation to Section 5(8)(f) of the IBC requires that an amount must be

…

**Application:** Since the applicant's claim originated from an operational debt and no money

…

## Parties

- **Judges:** LAKSHMI G…; Hariharan…
- **Appellants:** Capacite Infraproj…
- **Respondents:** Radius & Deserve…; Jayesh Natvarlal…; +3 more
- **Other parties:** Amit Infra-Logic…
- **Advocates:** Pulkit S…; Siddha Pa…; +8 more

## Timeline

- **2018-02-02 — Settlement…**: Settlement Terms were executed wherein the Corporate Debtor agreed to pay Rs. 6 crores to…
- **2019-11-14 — Demand N…**: The Applicant issued a demand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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