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TMI Blog2023 (8) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... and not a financial creditor. There was no disbursement for time value of money by the appellant within meaning of Section 5(8) of the IBC. There are no error in the order impugned. The Appeal is dismissed. - Company Appeal (AT) (Insolvency) No. 46 of 2023 - - - Dated:- 18-1-2023 - Justice Ashok Bhushan Chairperson And Barun Mitra Member (Technical) For the Appellant : Appearance not marked. ORDER Heard Learned Counsel for the Appellant. 2. This Appeal has been filed against the Order dated 03rd November, 2022 by which on an Application filed by the Home-Buyers, the Appellant has been removed from the Committee of Creditors. 3. Appellant s case is that Appellant was a land owner on which the development project w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2022. This tribunal in the aforesaid case had occasion to consider the similar development agreement and in paragraph 13, 14 and 15, following has been laid down: 13. When we look into the provision of Section 5(8)(f) Explanation (i) and (ii), it is clear that pre-condition for a debt being a Financial Debt is disbursement against the time value of money and when any amount is raised from an allotment under real estate such transaction is also covered under Section 5(8)(f). The pre-condition for application of Explanation (i) of Section 5(8)(f) is raising of an amount from allottee. The present is not a case where an amount has been raised from the Appellants the Landowners. The submission of the Appellant that they are allottees wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Limited vs. Axis Bank Ltd. Ors., (2020) 8 SCC 401 , where Hon ble Supreme Court while examining the definition under Section 5(8) of the I B Code noticed the essentials for Financial Debt. In Para 46, the Hon ble Supreme Court has again emphasised that essential element is disbursement against time value of the money. Para 46 of the judgment is as follows:- 46. Applying the aforementioned fundamental principles to the definition occurring in Section 5(8) of the Code, we have not an iota of doubt that for a debt to become financial debt for the purpose of Part II of the Code, the basic elements are that it ought to be a disbursal against the consideration for time value of money. It may include any of the methods for raising mone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial debt within the meaning of Section 5(8) of the Code. This debt may be of any nature but a part of it is always required to be carrying, or corresponding to, or at least having some traces of disbursal against consideration for the time value of money. 15. When we look into the facts of the present case and transaction entered by the Appellants Landowners with the Corporate Debtor, we do not find any error in the decision of the Adjudicating Authority holding the Appellants-Landowners as not Financial Creditors. The Company Appeal (AT) (Ins.) No. 821 of 2021, thus, deserved to be dismissed. 7. We are of the view that Judgement of this Tribunal in Namdeo Ramchandra Patil Ors. (supra) fully covers the issues and Adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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