# In the matter of Edward Keventer (Successors) Private Limited IB-775-ND-2019

> NCLT judgment dated 2020-01-16. Citation: TCN-2020-NCLT-02303. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Jan 2020
- **Citation:** TCN-2020-NCLT-02303
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/edward-keventer-successors-private-limited-ib-775-nd-2019-41c9470c

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/s Arenja Enterprises Pvt., Ltd. (Financial Creditor) against M/s. Edward Keventer (Successors) Private Limited (Corporate Debtor). The dispute originates from a Memorandum of Understanding/Collaboration agreement entered into by the parties in 1989, followed by supplementary MOUs. A civil suit was filed in 1992 before the Delhi High Court, which was decreed based on an amicable settlement in 1996. The settlement involved the Corporate Debtor developing a group-housing complex. The Financial Creditor alleged that the Corporate Debtor failed to fulfill its obligations under the decree, leading to the insolvency application.

## Facts

In 1989, Arenja Enterprises and Edward Keventer (Successors) Private Limited entered into a Memorandum of Understanding/Collaboration agreement regarding land development. Supplementary MOUs followed. Disputes arose in 1992, leading Arenja Enterprises to file a civil suit for specific performance against Edward Keventer in the Delhi High Court (CS (OS) No. 1744 of 1992). In 1996, the civil suit was decreed based on an amicable settlement. As per the settlement, Edward Keventer was to develop a group-housing complex on 22.95 acres. Arenja Enterprises was entitled to 34,000 sq. ft. of residential area. The settlement stipulated a 3-year period for sanctioning plans. If plans weren't sanctioned within 3 years, Edward Keventer would provide additional built-up area as

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## Issues and analysis

### Issue 1: Whether the claim made by the petitioner falls within the purview of the definition of 'Financial …

**Ratio:** The term 'financial debt' refers to a debt along with interest, if any, which is

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**Reasoning:** The NCLT reasoned that the decree passed in the civil suit was not for 'payment of

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8)(f) of the IBC, 2016,

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**Application:** In this case, the NCLT applied the definition of 'financial debt' to the facts

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** M/s Arenja…
- **Respondents:** M/s. Edward…

## Timeline

- **1989-01-01 — MOU/Collaboration…**: Arenja Enterprises and Edward Keventer entered into a Memorandum of…
- **1989-11-20 — Supplementa…**: Supplementary MOU between Arenja…

## 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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