Land Owners Entering Into Joint Development Agreements For Sharing Of Profit Do Not Come Within The Ambit Of Operational Creditors: NCLT New Delhi
1 year, 7 months ago

Land Owners Entering Into Joint Development Agreements For Sharing Of Profit Do Not Come Within The Ambit Of Operational Creditors: NCLT New Delhi

Live Law  

The National Company Law Tribunal, New Delhi Bench, comprising Chief Justice Ramalingam Sudhakar and Shri Avinash K. Srivastava, while adjudicating an application under Section 9 of Insolvency and Bankruptcy Code, 2016 in Mrs. Gurmeet Kaur Gill vs Raheja Developers Limited has held that an agreement in the nature of a Joint Development Agreement for a project with sharing of profit in an agreed ratio does not come within the ambit of an Operational Debt. It was agreed that in consideration of the abovementioned rights, the Corporate Debtor would develop the project on their own cost and pay certain amount to the Land Owners under various heads including “Revenue sharing.” It was contended by the Operational Creditor that the Land Owners were entitled to 23.5% of the amounts received by the customers of the projects. The nature of the transactions under the MOU and the Collaboration Agreement involved a Joint Development Agreement wherein the Corporate Debtor would develop the land and share the profits in the agreed ratio as per the term of Collaboration Agreements and MOU between the Corporate Debtor and the Land Owners. However, the suggestion that the Land Owners come within the ambit of “Operational Creditors” as there is a direct nexus between the units sold by the Corporate Debtor and the licensed land owned by the Land owners would amount to giving a very wide interpretation to Section 5 which cannot be the intention of the Legislature.

Development Corporate Operational Creditor Land Operational Debt Agreement Project Tribunal Owners Mou Adv Operational Creditors Debtor Land Owners Raheja Developers Limited Operational Debt Joint Development Agreement Collaboration Agreement Gurmeet Kaur Gill  nclt  debtor  sharing  land  profit  owners  joint  agreement  corporate  delhi  debt  entering  development  project  adv  operational

History of this topic

Development Rights Constitute Property U/S 3(27) Of IBC, Can Be Included In Information Memorandum By RP U/S 29 Of Code: NCLAT
1 month, 3 weeks ago

Development Rights Constitute Property U/S 3(27) Of IBC, Can Be Included In Information Memorandum By RP U/S 29 Of Code: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Ashok Bhushan and Barun Mitra affirmed that development rights are property within the meaning of section 3 of the IBC which can be included in the Information Memorandum by Resolution Professional under section 29 of the IBC. The Tribunal further observed that the Adjudicating Authority has jurisdiction to enter into as to whether …

RP Best Person To Decide What Part Of Corporate Debtor's Business Is To Be Carried Out: NCLAT Delhi
9 months, 4 weeks ago

RP Best Person To Decide What Part Of Corporate Debtor's Business Is To Be Carried Out: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan, Shri Barun Mitra and Shri Arun Baroka, has held that the Resolution Professional who is running the Corporate Debtor's business, is the best person to decide as to what part of the business can be carried out. It has been held that the Resolution Professional is the …

Section 7 Petition Seeking ‘Joint’ CIRP Of Separate Corporate Entities Involved In Common Real Estate Project Is Maintainable: NCLAT Delhi
1 year, 1 month ago

Section 7 Petition Seeking ‘Joint’ CIRP Of Separate Corporate Entities Involved In Common Real Estate Project Is Maintainable: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan and Shri Barun Mitra, has held that a petition under Section 7 of IBC, filed by allottees for joint CIRP of separate corporate entities involved in a common real estate project is maintainable. The NCLAT while upholding the maintainability of such Section 7 petition, has observed as …

IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court
1 year, 9 months ago

IBC- Resolution Professional Entitled To Take Control Of Corporate Debtor's Rights In Assets Licensed To Third Parties : Supreme Court

Live Law  

The Supreme Court has held that a resolution professional is entitled to take control of the rights of a corporate debtor in assets which are licensed to third parties. The RP defended the NCLT/NCLAT orders by contending that the impugned orders have not hampered the rights of Victory and what is sought to be included in the Information Memorandum are …

CIRP Against Real Estate Company Limited To Project Concerned And Will Not Affect Other Projects : NCLAT [Read Judgment]
4 years, 10 months ago

CIRP Against Real Estate Company Limited To Project Concerned And Will Not Affect Other Projects : NCLAT [Read Judgment]

Live Law  

The National Company Law Appellate Tribunal has held that an insolvency process against a real estate company will impact only the project concerned and not the other projects of the builder-developer. "In CIRP against a real estate, if allottees or financial institutions, banks or operational creditors of one project initiated CIRP against the corporate debtor, it is confined to the. …

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