# In the matter of Kaliber Associates Pvt. Ltd. IB - 228-PB-2018

> NCLT judgment dated 2019-01-18. Citation: TCN-2019-NCLT-05222. Relan Buildwell Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Jan 2019
- **Citation:** TCN-2019-NCLT-05222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kaliber-associates-pvt-ltd-ib-228-pb-2018-021ff9f1

## Summary

### Background

Relan Buildwell Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Kaliber Associates Pvt. Ltd. for initiating the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that an amount of Rs. 2,00,00,000/- was advanced to the respondent at an interest rate of 18% per annum. The respondent allegedly defaulted on repayment, leading to the application for CIRP.

## Facts

Relan Buildwell Pvt. Ltd. (the Applicant) advanced Rs. 2,00,00,000/- to Kaliber Associates Pvt. Ltd. (the Respondent) at 18% interest per annum. The Applicant transferred the funds via RTGS. The Respondent paid Rs. 12,96,000/- as interest. The Respondent issued a cheque for Rs. 2,00,00,000/- which was dishonored with the remark 'Kindly contact Drawer/Drawee bank and please present again'. The Applicant sent a demand notice under Section 138 of the Negotiable Instruments Act, 1881. An earlier application under the Code was withdrawn after a settlement, but the settlement failed. Two cheques of Rs. 50,00,000/- each were encashed, but a subsequent cheque for Rs. 1,00,00,000/- was dishonored with the remark 'funds insufficient'. The Respondent failed to comply with the

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## Issues and analysis

### Issue 1: Whether there has been a default on the part of the Respondent, Kaliber Associates Pvt. Ltd., …

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

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**Reasoning:** The court reasoned that the dishonoring of the cheque issued by the Respondent, coupled

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The dishonored cheque and the failure to adhere to the settlement agreement

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** Relan Buildwell…
- **Respondents:** Kaliber Associates…
- **Advocates:** R. K. G…; Swaralipi D…; +4 more

## Timeline

- **2015-03-31 — Interest P…**: Respondent paid interest of…
- **2018-02-14 — Cheque I…**: Respondent issued cheque no. 013565 of…

## 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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