Kerala High Court: E-Toilets to be Build for Flood Affected Tribal Families  ||  Amalgamation of Air Asia With Air India Express Approved by NCLT  ||  SC: Accused Refusing to Undergo Medical Examination Amounts to Non-Cooperation With Investigation  ||  Ker. HC: Power Under Section 216 of CrPC Can be Exercised by the Court at Any Time Before Judgement  ||  IIAC (Conduct of Micro and Small Enterprises Arbitration) Regulations, 2024 Issued by IIAC  ||  Mad. HC: State Bound to Take Care of Adults With Mental Health Illness and No Family Support  ||  Mad. HC: State Bound to Take Care of Adults With Mental Health Illness and No Family Support  ||  Ker HC: Min. of Animal Husbandry to Consider Objections to Ban on ‘Dangerous & Ferocious’ Dog Breeds  ||  Madras High Court: Important to Send Out Message That Courts Shouldn’t be Taken for Granted  ||  Insolvency Proceedings Initiated Against Himalayan Mineral Water by NCLT    

Ashoka Hi-Tech Builders Private Limited vs. Sanjay Kundra and Anr. - (NATIONAL COMPANY LAW APPELLATE TRIBUNAL) (18 Jan 2023)

A collaborator in the development agreement is not a financial creditor



Present Appeal has been filed against the Order by which on an Application filed by the Home-Buyers, the Appellant has been removed from the Committee of Creditors. Appellant's case is that Appellant was a land owner on which the development project was to be constructed and he had filed the claim before the Resolution Professional which was admitted and he was inducted in the Committee of Creditors however subsequently on an Application filed by the Home-Buyers, impugned Order has been passed removing the Appellant from the Committee of Creditors holding that he is not the financial creditor.

Looking into the terms and conditions of the development agreement, the Adjudicating Authority has come to the conclusion that, the Appellant was not a financial creditor since no amount was disbursed for the time value of money on the basis of which the Appellant can be held to be financial creditor.

Judgement of this Tribunal in Namdeo Ramchandra Patil & Ors. Vs. Vishal Ghisulal Jain fully covers the issues and Adjudicating Authority has rightly referred to the Judgement holding that Appellant is not a financial creditor. The terms and conditions of development agreement entered Company Appeal between the appellant and the corporate debtor, makes it clear that the Appellant was a collaborator in the development agreement and not a financial creditor. There was no disbursement for time value of money by the Appellant within meaning of Section 5(8) of the IBC. There is no error in the order impugned. The Appeal is dismissed.


Share :        

Disclaimer | Copyright 2024 - All Rights Reserved