# In the matter of B And B Infrastructure Limited C.P. (IB) No. 331-BB-2019

> NCLT judgment dated 2020-02-13. Citation: TCN-2020-NCLT-01964. Mr. R.V.S Rao and Mrs. Lakshmi Rao, the Petitioners, filed C.P. (IB) No.331/BB/2019 under…

- **Court:** NCLT
- **Order date:** 13 Feb 2020
- **Citation:** TCN-2020-NCLT-01964
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/b-and-b-infrastructure-limited-cp-ib-no-331-bb-2019-983e2fcd

## Summary

### Background

Mr. R.V.S Rao and Mrs. Lakshmi Rao, the Petitioners, filed C.P. (IB) No.331/BB/2019 under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. B and B Infrastructure Limited, the Respondent/Corporate Debtor. The petitioners claimed that the corporate debtor defaulted on a total outstanding amount of Rs. 8,25,37,700/-, which includes interest of Rs. 12,19,768/-. The petitioners, as financial creditors, had invested to finance the project of the corporate debtor with buyback promises and arrangements. The respondent opposed the petition, contending that it is a solvent company, the petition is not maintainable due to amendments in the IBC, and the petitioners are not financial

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## Facts

Mr. R.V.S Rao and Mrs. Lakshmi Rao invested in M/s. B and B Infrastructure Limited's project, with buyback promises. B and B Infrastructure Limited was incorporated on 14.07.1987. The petitioners and the respondent entered into three separate buyback agreements, agreements of sale, and construction agreements, all dated 27.06.2015, for three apartments (6-C, 6-D, and 7-C). The petitioners advanced Rs. 4,13,34,068/- to the respondent. The buyback agreements stipulated a 3-year waiting period. After the waiting period, the petitioners offered the apartments for buyback in August 2018. The respondent made a payment of Rs. 3,00,00,000/- on 01.01.2019 and Rs. 1,13,34,068/- on 20.06.2019. The petitioners claimed an outstanding amount of Rs. 8,27,37,700/-, including interest.

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## Issues and analysis

### Issue 1: Whether the instant Petition is filed with an intention to recover alleged outstanding amount after …

**Ratio:** The provisions of the Code cannot be invoked as a substitute for debt enforcement or

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**Reasoning:** The Petitioners have admittedly received the Principle amount in full with no element of

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**Interpretation:** The court interpreted that the IBC is not intended to be used as a tool for

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**Application:** The court applied this principle to the facts, noting that the petitioners had

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** R.V.S…
- **Respondents:** B and B Infrastruc…; B And B Infrastruc…

## Timeline

- **1987-07-14 — Incorporation of…**: M/s. B and B Infrastructure…
- **2003-05-15 — Agreement for…**: The Respondent conferred the development rights of the property vide an Agreement for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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