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TMI Blog2019 (11) TMI 1616X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 15.10.2019 it was posted for Admission to-day, we asked learned Counsel to make submissions. He has taken us through the record and he has made submissions. We have heard the learned Counsel for Respondent also. 2. In this matter, the Section 7 Application filed by the Appellant has been rejected. The question before us is whether the Appeal is fit to be admitted. 3. It is stated by the learned Counsel for the Appellant that the Appellant- Monica Ramesh Shah filed the Section 7 Application as she had earlier entered into a transaction with the Respondent so that she could purchase a unit in Pinnacle Business Park. It is stated that the Appellant already had one unit in that Pinnacle Business Park which was constructed by the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad approached the Respondent in 2016 as the Appellant wanted to buy a unit in the existing Pinnacle Business Park for a consideration of Rs. 10,32,20,000/-. According to the learned Counsel, it was agreed between the parties that the Appellant Company Appeal (AT) (Ins) No.1047 of 2019 will pay Rs. 1 Crore and then Sale Agreement would be registered. The counsel states that the ledger account of the Respondent (copy of which has been filed by the Appellant at page -57) shows that after receipt of the initial amount of Rs. 49,50,000/-, other cheques issued by the Appellant bounced and the Respondent on 31st December, 2016 forfeited the amount which had been deposited by the Appellant as can be seen in the entry at page - 58 of the Paper Book. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation.-- For the purpose of this sub- clause,-- (i) any amount raised from an allottee under a real estate project shall be deemed to be an amount having the commercial effect of a borrowing; and (ii) the expressions, "allottee" and "real estate project" shall have the meanings respectively assigned to them in clauses (d) and (zn) of Section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);] (g) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account; (h) any counter-indemnity obligation in respect of a gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd all easement, rights and appurtenances belonging thereto;" Keeping in view the object with which Explanation was added in Section 5(8) of IBC and above definitions of 'allottee' and 'real estate project', considering the facts of the present matter, what appears is that the transaction was an attempt to enter into an agreement of sale in existing building. It was a project completed and executed and cannot be still referred to as a real estate "project". Section 3(11) defines debt as follows:- "(11) "debt" means a liability or obligation in respect of a claim which is due from any person and includes a financial debt and operational debt;" 6. Even if there would have been a regular agreement of sale executed between ..... X X X X Extracts X X X X X X X X Extracts X X X X
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