# In the matter of Kaba Infratech Pvt. Ltd. (IB)-1255 (ND)-2019

> NCLT judgment dated 2019-09-18. Citation: TCN-2019-NCLT-01398. M/s. T.R. Real Estate Pvt. Ltd., the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-NCLT-01398
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kaba-infratech-pvt-ltd-ib-1255-nd-2019-f26b1913

## Summary

### Background

M/s. T.R. Real Estate Pvt. Ltd., the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Kaba Infratech Pvt. Ltd., the Corporate Debtor, due to its inability to liquidate its debt. The Corporate Debtor was engaged in the infrastructure business and had requested a loan of Rs. 6 crores from the Financial Creditor to complete a project awarded by "UP PWD". An agreement was executed on 20.07.2017, with a loan duration of 3 months and an interest rate of 24% per annum. The Financial Creditor disbursed Rs. 1,89,00,000 in November 2017. The Corporate Debtor failed to repay the loan amount within the agreed 90 days.

## Facts

M/s. T.R. Real Estate Pvt. Ltd. (Financial Creditor) provided a loan to M/s. Kaba Infratech Pvt. Ltd. (Corporate Debtor) for a project awarded by "UP PWD". An agreement dated 20.07.2017 was executed for a loan of Rs. 6 crores, but only Rs. 1.89 crores was disbursed in November 2017. The loan was to be repaid within 90 days with 24% interest per annum. The Corporate Debtor failed to repay the loan, leading the Financial Creditor to file a criminal complaint. A settlement was reached on 18.07.2018, where the Corporate Debtor agreed to repay by 30.11.2018 with 18% interest, but only paid Rs. 25 lakhs. The Financial Creditor then filed an application under Section 7 of the IBC, 2016, to initiate CIRP. The Corporate Debtor argued that the entire loan amount was

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

…

**Reasoning:** The court considered the facts and circumstances of the case, including the loan

…

**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

…

**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

…

## Parties

- **Judges:** Ina Mal…; Saroj Ra…
- **Appellants:** M/s. T.R. Real…
- **Respondents:** M/s Kaba Infratech…

## Timeline

- **2017-07-20 — Loan Agre…**: Agreement executed between the Financial Creditor and the Corporate Debtor for a loan of…
- **2017-11-01 — Loan Disbur…**: The Financial Creditor disbursed Rs.…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/kaba-infratech-pvt-ltd-ib-1255-nd-2019-f26b1913