# In the matter of KK Flats Pvt Ltd TCP-89-(IB)-2017

> NCLT judgment dated 2017-08-21. Citation: TCN-2017-NCLT-00556. The petition was originally filed before the Hon'ble High Court of Madras and subsequently…

- **Court:** NCLT
- **Order date:** 21 Aug 2017
- **Citation:** TCN-2017-NCLT-00556
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kk-flats-pvt-ltd-tcp-89-ib-2017-f7dbe877

## Summary

### Background

The petition was originally filed before the Hon'ble High Court of Madras and subsequently transferred to the Chennai Bench of the National Company Law Tribunal (NCLT) and renumbered as TCP/89/(IB)/CB/2017. The application seeks the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (I&B Code), and the appointment of an Interim Resolution Professional (IRP). The Financial Creditor claims an outstanding debt against the Corporate Debtor.

## Facts

A. Prem Kumar, the Financial Creditor, filed a petition against KK Flats Pvt Ltd, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was initially filed before the Hon'ble High Court of Madras and later transferred to the NCLT Chennai Bench. The Financial Creditor claimed an outstanding debt of Rs.31,10,382/- as of 31.03.2012, supported by the Corporate Debtor's balance sheet for 2012-2013 and the Financial Creditor's Income Tax Return for 2013-2014. A statutory notice dated 25.10.2014 was served upon the Corporate Debtor. The Corporate Debtor admitted to the investment by the Financial Creditor but claimed the debt was paid to the Petitioner's father, which the father denied via affidavit. The NCLT found the Corporate

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding debt claimed by the …

**Ratio:** The legal principle applied is that if a corporate debtor defaults in paying a debt

…

**Reasoning:** The NCLT examined the documents submitted by the Financial Creditor, including the

…

**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial

…

**Application:** In this case, the NCLT applied the principle by assessing the evidence of

…

## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** A.PREM…
- **Respondents:** KK FLATS P…

## Timeline

- **2017-08-21 — Hearing…**: Hearing held on 21/08/2017 at 10.30 AM before the Chennai Bench of the National Company…
- **2014-10-25 — Statutory…**: The Financial Creditor served a…

## 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)

---

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/kk-flats-pvt-ltd-tcp-89-ib-2017-f7dbe877