# In the matter of APS Buildtech Pvt. Ltd. (IB) 19(ND) 2018

> NCLT judgment dated 2018-02-09. Citation: TCN-2018-NCLT-01854. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The…

- **Court:** NCLT
- **Order date:** 9 Feb 2018
- **Citation:** TCN-2018-NCLT-01854
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aps-buildtech-pvt-ltd-ib-19nd-2018-96fe3b53

## Summary

### Background

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor, Khushal Infratech Pvt. Ltd., claimed initiation of Corporate Insolvency Resolution Process against the Corporate Debtor, APS Buildtech Pvt. Ltd., due to its inability to pay its debt. The Corporate Debtor was engaged in the real estate business and had floated a scheme for a Group Housing Residential Complex. The Financial Creditor booked two flats and a memorandum of understanding was executed where the Corporate Debtor acknowledged receiving Rs. 40 lakhs. The agreement included an option for the Financial Creditor to seek a refund with 27% interest after one year.

## Facts

Khushal Infratech Pvt. Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against APS Buildtech Pvt. Ltd. (Corporate Debtor). The Corporate Debtor was in the real estate business and had a residential complex project. The Financial Creditor booked two flats in the project for a total consideration of Rs. 79,29,858. A memorandum of understanding was executed, with the Corporate Debtor acknowledging receipt of Rs. 40 lakhs. The agreement allowed the Financial Creditor to seek a refund with 27% interest after one year. The Financial Creditor made payments of Rs. 4 lakhs via cheque and Rs. 36 lakhs in cash. The Corporate Debtor issued post-dated cheques for Rs. 40 lakhs and Rs. 10.8 lakhs (interest). The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether a Financial Debt is due and payable by the …

**Ratio:** A financial debt is a debt along with interest, if any, which is disbursed against the

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**Reasoning:** The court found that the documents on record clearly acknowledged the receipt of Rs. 40

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**Interpretation:** The court interpreted the agreement and the issued cheques as evidence of a

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**Application:** The court applied the ratio to the facts by noting the Corporate Debtor's

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Khushal Infratech…
- **Respondents:** APS Buildtech…
- **Advocates:** Ritika…; Rajiv Shankar…; +2 more

## Timeline

- **2014-01-15 — Cheque Pa…**: Rs. 4 Lakhs paid via cheque…
- **2014-02-07 — Cash Pay…**: Rs. 36 Lakhs paid…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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