# In the matter of K.C. Land and Finance Ltd. CP (IB) No. 332-Chd-Pb-2018

> NCLT judgment dated 2021-07-27. Citation: TCN-2021-NCLT-01601. The case involves an application filed by Ludhiana Scripts Pvt Ltd (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 27 Jul 2021
- **Citation:** TCN-2021-NCLT-01601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kc-land-and-finance-ltd-cp-ib-no-332-chd-pb-2018-167c1388

## Summary

### Background

The case involves an application filed by Ludhiana Scripts Pvt Ltd (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against K.C. Land & Finance Ltd (Corporate Debtor). The application was initially rejected by the Tribunal, but the Financial Creditor appealed to the NCLAT, which allowed the appeal and remitted the matter back to the NCLT for reconsideration. During the appeal process, a settlement was proposed, and the NCLAT allowed the parties time to reach a settlement. Subsequently, the C.P. was dismissed as withdrawn with liberty to revive if the settlement terms were not complied with. Later, the Applicant filed IA No. 133/2020 seeking revival of the present CP as

…

## Facts

Ludhiana Scripts Pvt Ltd (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against K.C. Land & Finance Ltd (Corporate Debtor). The application was initially rejected by the NCLT. The Financial Creditor appealed to the NCLAT, which allowed the appeal and remitted the matter back to the NCLT. During the appeal, a settlement was proposed, and the NCLAT granted time for settlement negotiations. The C.P. was dismissed as withdrawn with liberty to revive if the settlement terms were not complied with. The Applicant filed IA No. 133/2020 seeking revival of the present CP as Corporate debtor breached the terms of the settlement deed dt.30.07.2019, which was

…

## Issues and analysis

### Issue 1: Whether the petition for initiation of CIRP should be admitted based on the order of the Hon'ble …

**Ratio:** The admission of debt and liability by the corporate debtor, coupled with the NCLAT's

…

**Reasoning:** The court relied on the NCLAT's order and the corporate debtor's admission of debt and

…

**Interpretation:** The legal principle is that if a corporate debtor admits to a debt and

…

**Application:** In this case, the NCLAT had already directed the NCLT to admit the Section 7

…

## Parties

- **Judges:** Ajay Kumar…; RAGHU N…; +1 more
- **Appellants:** Ludhiana Scrips…
- **Respondents:** K.C. Land &…

## Timeline

- **2018-12-11 — Tribunal Rejects…**: The Tribunal rejected the application…
- **2019-05-02 — NCLAT Allows…**: The NCLAT allowed the appeal of the financial creditor and remitted the matter back to…

## 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/kc-land-and-finance-ltd-cp-ib-no-332-chd-pb-2018-167c1388