# In the matter of Lifetime Infratech Private Limited Company Petition No. (IB)-1724(PB)-2018

> NCLT judgment dated 2019-09-25. Citation: TCN-2019-NCLT-01270. The case involves an application filed by M/s Khanna Jewellers Private Limited, the financial…

- **Court:** NCLT
- **Order date:** 25 Sept 2019
- **Citation:** TCN-2019-NCLT-01270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lifetime-infratech-private-limited-company-petition-no-ib-1724pb-2018-a0efda0b

## Summary

### Background

The case involves an application filed by M/s Khanna Jewellers Private Limited, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s Lifetime Infotech Private Limited, the corporate debtor. The corporate debtor was incorporated on 08.03.2006. The applicant had previously filed an application under Section 7, which was withdrawn following a settlement agreement dated 19.02.2018 between the parties. The corporate debtor allegedly defaulted on the repayment terms outlined in the settlement agreement, leading to the current application.

## Facts

M/s Khanna Jewellers Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Lifetime Infotech Private Limited. Lifetime Infotech was incorporated on 08.03.2006. Previously, Khanna Jewellers had filed a similar application, which was withdrawn after a settlement agreement was reached on 19.02.2018. This settlement involved restructuring the repayment of financial debts, including interest, and the execution of guarantee and mortgage deeds. The corporate debtor allegedly defaulted on the repayment terms of the settlement agreement. Specifically, two interest installments due on 01.07.2018 and 01.10.2018 were not paid. The cheque issued on 01.10.2018 was

…

## Issues and analysis

### Issue 1: Whether the applicant, M/s Khanna Jewellers Private Limited, qualifies as a 'Financial Creditor' …

**Ratio:** Section 5(7) and 5(8) of the IBC define 'Financial Creditor' and 'Financial Debt'. A

…

**Reasoning:** The NCLT reasoned that Clause 1.1 of the Settlement Agreement dated 19.02.2018 clearly

…

**Interpretation:** The interpretation of 'Financial Debt' under the IBC encompasses not only the

…

**Application:** In this case, the settlement agreement between Khanna Jewellers and Lifetime

…

## Parties

- **Judges:** CHIEF JUSTICE…; S. K. MOH…
- **Appellants:** M/s Khanna…
- **Respondents:** M/s Lifetime…
- **Advocates:** Manik D…; Rohan Ja…; +4 more

## Timeline

- **2006-03-08 — Incorporation of…**: M/s Lifetime Infotech Private…
- **2017-01-01 — Previous Section 7…**: Khanna Jewellers filed a previous application under Section 7 of the IBC, being Company…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/lifetime-infratech-private-limited-company-petition-no-ib-1724pb-2018-a0efda0b