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ARTICLE · 21 SEPTEMBER 2020

Decree Holders-Financial Creditors Under IBC?

Dhaval Vussonji & Associates
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In a recent judgement of the National Company Law Appellate Tribunal, passed on 14th August 2020 in the matter of Sushil Ansal v. Ashok Tripathi and Ors.

IndiaInsolvency/Bankruptcy/Re-Structuring
Karishma Kaji
Karishma Kaji
Jagmehar Saini
Jagmehar Saini
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In a recent judgement of the National Company Law Appellate Tribunal ("NCLAT") (Delhi), passed on 14th August 2020 in the matter of Sushil Ansal v. Ashok Tripathi and Ors1, a better understanding of whether a decree holder is a financial creditor under the Insolvency and Bankruptcy Code, 2016 ("Code") has been provided.

FACTS OF THE CASE

The Respondent Nos. 1 and 2 are individuals and had jointly booked a unit with M/s Ansal Properties and Infrastructure Limited ("Corporate Debtor") in Sushant Golf City developed at 'High Tech Township'. Sector-P, Sultanpur Road, Lucknow and the Respondent No. 2 had booked another flat thereafter. A joint "Built Up Agreement/ Builder Buyer Agreement" dated 12th September, 2014 in respect of the first unit and Flat Buyer Agreement dated 28th September, 2014 for the second unit had been executed inter se the respective parties. The Corporate Debtor had undertaken to complete the construction and to deliver possession of the

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