Whether execution of decree on the strength of Recovery Certificate issued by the RERA would justify triggering of the CIRP – Sh. Sushil Ansal Vs. Ashok Tripathi – NCLAT New Delhi
In this judgment, NCLAT held that the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 is deemed to have come in force on 28.12.2019 though the same has been notified on 13.03.2020. The thirty days’ time granted to allottees for meeting the threshold limit would, therefore, commence w.e.f 28.12.2019 and not w.e.f. 13.03.2020; The answer to the question whether a decree-holder would fall within the definition of ‘Financial Creditor’ has to be an emphatic ‘No’ as the amount claimed under the decree is an adjudicated amount and not a debt disbursed against the consideration for the time value of money and does not fall within the ambit of any of the clauses enumerated under Section 5(8) of the Code; Execution of decree on the strength of Recovery Certificate issued by the UP RERA would not justify triggering of the CIRP.
