Liability arises on the part of Corporate Debtor in respect of sale agreement, which, being in the nature of a financial lease under Ind AS, is covered under Section 5(8)(d) of the Code? – Ghaziabad Development Authority Vs. Mr. Amit Agarwal – NCLT Principal Bench
The Hon’ble NCLT Principal Bench is of the view that the judgment, in Sandeep Mittal v. ASREC (India) Ltd. and Ors. (2024) ibclaw.in 573 NCLAT relied by Corporate Debtor is on a different footing based on a different factual matrix in which primarily the ingredients of Section 5(8)(f) of the Code were covered whereas in the present case ingredients of Section 5(8)(d) of the Code is applicable wherein it is a case of liability of Corporate Debtor, as is in the form a financial lease with the element of time value of money being incorporated in the agreement to sale itself and part transacted and balance defaulted with interest liability.