# In the matter of Five K Properties Private Limited C.P. (IB)-272-MB-2017

> NCLT judgment dated 2018-11-19. Citation: TCN-2018-NCLT-00309. The case originates from a petition transferred from the Bombay High Court. Initially, a…

- **Court:** NCLT
- **Order date:** 19 Nov 2018
- **Citation:** TCN-2018-NCLT-00309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/five-k-properties-private-limited-cp-ib-272-mb-2017-98267ae6

## Summary

### Background

The case originates from a petition transferred from the Bombay High Court. Initially, a petition was filed under Ordinary Original Civil Jurisdiction on 2016-07-13, seeking the winding up of the respondent under sections 433(e), 434, and 439 of the Companies Act, 1956, due to a debt of ₹7,95,106/- as of 2015-03-31, along with 18% p.a. interest. This petition was then transferred to the NCLT Bench on 2016-12-07. The Operational Creditor then submitted Form No.5 under Rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, claiming the same debt amount.

## Facts

Keystone Realtors Private Limited, the Petitioner and Operational Creditor, claimed that Five K Properties Private Limited, the Respondent and Corporate Debtor, defaulted on a debt of ₹7,95,106/- as of 2015-03-31, with interest accruing from 2015-04-01 at 18% p.a. The debt arose from unpaid maintenance and other charges for Flats Nos. 1401 and 1402 in the building 'La Solita', which the Corporate Debtor purchased, used, and occupied. The Petitioner had acquired rights in the land through the merger of its subsidiary, Bricklayer Constructions Private Limited. The Petitioner sent demand notices to the Corporate Debtor on 2016-04-09 and 2016-06-16, but the Corporate Debtor remained unresponsive and did not dispute the claim. The Petitioner expressed concern that the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** The principle that a default is established when a debtor fails to make payments as per

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**Reasoning:** The court observed that the Corporate Debtor failed to respond to demand notices and did

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**Interpretation:** The legal issue involves interpreting the concept of 'default' under the

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**Application:** The court applied the principle of default to the specific facts of the case,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Keystone Realtors…
- **Respondents:** Five K Properties…

## Timeline

- **2016-07-13 — Original Petit…**: A petition was filed under Ordinary Original Civil Jurisdiction in the Bombay High Court…
- **2015-03-31 — Debt Calculat…**: The debt amount was calculated as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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