# In the matter of CK Infrastructure Ltd. C.P.No. IB-276-2017

> NCLT judgment dated 2017-11-03. Citation: TCN-2017-NCLT-00245. RCI Industries and Technologies Limited, claiming to be a Financial Creditor of CK…

- **Court:** NCLT
- **Order date:** 3 Nov 2017
- **Citation:** TCN-2017-NCLT-00245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ck-infrastructure-ltd-cpno-ib-276-2017-0dc4dd48

## Summary

### Background

RCI Industries and Technologies Limited, claiming to be a Financial Creditor of CK Infrastructure Ltd., filed an application seeking initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The claim is based on a loan of Rs.50.00 lakhs given to the Corporate Debtor on 1.1.2015, repayable within 30 days with interest. The Financial Creditor provided the funds via cheque, and the Corporate Debtor acknowledged the debt and issued a post-dated cheque for Rs.52,50,000/- including interest. This cheque was dishonored due to insufficient funds. The Corporate Debtor sought replacement of the cheque, but the replacement cheque was not presented. The Financial Creditor then issued a legal notice on 6.7.2017 demanding

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## Facts

On 1.1.2015, RCI Industries and Technologies Ltd. (Financial Creditor) extended a loan of Rs. 50.00 lakhs to CK Infrastructure Ltd. (Corporate Debtor), with repayment due within 30 days, including interest. The loan was provided via cheque No. 058170. The Corporate Debtor acknowledged the debt and issued a post-dated cheque for Rs. 52,50,000/- dated 31.1.2015, inclusive of Rs. 2.50 lakhs interest. The post-dated cheque was dishonored due to 'insufficient funds' on 4.3.2015. The Corporate Debtor requested a replacement cheque, but it was not presented. The Financial Creditor issued a legal notice dated 6.7.2017 demanding Rs. 73,85,959/-, which included interest calculated at 18% per annum from 1.4.2015 to 4.7.2017. The Corporate Debtor sought the loan for participating

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## Issues and analysis

### Issue 1: Whether the default as contemplated under the provisions of IBC, 2016 has been established by the …

**Ratio:** The legal principle applied is that if a corporate debtor defaults in repayment of a debt

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**Reasoning:** The Tribunal considered the loan agreement, the dishonored cheque, the legal notice, and

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**Interpretation:** The interpretation of 'default' under IBC, 2016 is that it includes non-payment

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**Application:** The Tribunal applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** RCI Industries &…
- **Respondents:** CK Infrastructure…

## Timeline

- **2015-01-01 — Loan Agre…**: RCI Industries and Technologies Ltd. extended a loan of Rs. 50.00 lakhs to CK…
- **2015-01-01 — Post-dated Cheq…**: CK Infrastructure Ltd. issued a post-dated cheque for Rs. 52,50,000/- dated 31.1.2015,…

## 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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