# In the matter of keltech Infrastructure Ltd. IB-28- (ND)-2018

> NCLT judgment dated 2019-09-13. Citation: TCN-2019-NCLT-01467. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Sept 2019
- **Citation:** TCN-2019-NCLT-01467
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/keltech-infrastructure-ltd-ib-28-nd-2018-2297dcc9

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Aaj Finance & Credit Limited (Financial Creditor) against Keltech Infrastructures Ltd. (Corporate Debtor). The Financial Creditor claimed default on a loan of Rs 50,00,000/- extended to the Corporate Debtor in 2013. Several MOUs were executed between the parties regarding the loan and mortgage of two flats as security. However, no charge was ever created in favor of the Financial Creditor. Later, a Builder Buyer Agreement (BBA) was entered into between the parties for the sale of a flat to the Financial Creditor, which the Corporate Debtor claimed discharged the debt. The Financial Creditor argued that the BBA was only for security and the debt remained unpaid.

## Facts

Aaj Finance & Credit Limited (Financial Creditor) extended a loan of Rs 50,00,000/- to Keltech Infrastructures Ltd. (Corporate Debtor) on 30.05.2013. Several MOUs were executed between the parties from 2013 to 2016 regarding the loan and mortgage of two flats as security, but no charge was ever created in favor of the Financial Creditor. On 03.06.2013, a Buyer/Seller agreement was executed for the properties kept as security. On 01.06.2014, 01.06.2015 and 01.06.2016 fresh MOUs were executed. In July 2016, some cheques for interest payments were dishonored. On 02.05.2017 and 05.06.2017, the Financial Creditor issued letters seeking repayment of dues, which were either returned unserved or not replied to. On 27.10.2017, a demand notice was issued by the Financial

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## Issues and analysis

### Issue 1: Whether the Builder Buyer Agreement (BBA) dated 01.10.2016 discharged the debt owed by the …

**Ratio:** A subsequent agreement between parties can supersede prior agreements if it represents a

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**Reasoning:** The Tribunal considered the Corporate Debtor's argument that the BBA discharged the debt.

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**Interpretation:** The interpretation of the BBA is crucial. If the BBA was intended as a complete

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**Application:** In this case, the Tribunal found that the BBA represented a fresh bargain

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## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** Aaj Finance &…
- **Respondents:** Keltech Infrastruc…

## Timeline

- **2013-05-30 — Loan Agre…**: Memorandum of Understanding (MOU) executed for a loan of Rs 50,00,000/- from Aaj Finance…
- **2013-06-01 — Loan Disb…**: Payment of loan to Keltech Infrastructure Limited was made through cheque for amount 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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