# 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-01970. 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-01970
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/b-and-b-infrastructure-limited-cp-ib-no-331-bb-2019-e07601bb

## 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 IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. B and B Infrastructure Limited, the Corporate Debtor, on the grounds of default on a total outstanding amount of Rs. 8,25,37,700/-, which includes interest. The Petitioners, as Financial Creditors, had invested to finance the Corporate Debtor's project with buyback promises and arrangements. The Corporate Debtor 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, concerning three apartments. The Petitioners advanced Rs. 4,13,34,068/- towards

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## Facts

Mr. R.V.S Rao and Mrs. Lakshmi Rao (Petitioners) invested in M/s. B and B Infrastructure Limited (Corporate Debtor) to finance a project with buyback promises. Three agreements were signed on 2015-06-27: buyback, sale, and construction agreements for three apartments (6-C, 6-D, 7-C). Petitioners advanced Rs. 4,13,34,068/-. After a 3-year waiting period, Petitioners exercised the buyback option in August 2018. The Corporate Debtor made partial payments: Rs. 3,00,00,000/- on 2019-01-01 and Rs. 1,13,34,068/- on 2019-06-20, leaving a balance. Petitioners sent a legal notice demanding the remaining amount with 18% interest. The Corporate Debtor is solvent with assets over Rs. 300 crores. The Petitioners added interest unilaterally, despite no mention of it in the

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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 Insolvency and Bankruptcy Code, 2016 cannot be invoked as a

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

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**Interpretation:** The court interprets that the IBC is designed for insolvency resolution, not

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**Application:** Since the Petitioners received the principal amount and are primarily seeking

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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…
- **2015-06-27 — Agreements…**: Three agreements were signed: buyback, sale, and construction agreements for three…

## 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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