# In the matter of Kalzen Contech Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03152. Karne Ramesh Babu, claiming to be a Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kalzen-contech-private-limited-c8d4667f

## Summary

### Background

Karne Ramesh Babu, claiming to be a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Kalzen Contech Private Limited, the purported Corporate Debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed to have extended credit facilities amounting to Rs. 1,98,61,990/-, with an outstanding amount of Rs. 2,98,79,184/- as per the statement of account dated 2023-11-21. The date of default was stated as 2023-03-14. The Corporate Debtor allegedly availed credit facilities for its construction business and offered equity as security. The Financial Creditor claimed to have transferred funds through his account, his firm's account, and cash payments. The Corporate Debtor

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## Facts

Karne Ramesh Babu, the Financial Creditor, filed a petition under Section 7 of the IBC against Kalzen Contech Private Limited, the Corporate Debtor, seeking initiation of CIRP. The Financial Creditor claimed that the Corporate Debtor availed credit facilities amounting to Rs. 1,98,61,990/-, with an outstanding amount of Rs. 2,98,79,184/- as of 2023-11-21, and a default date of 2023-03-14. The Corporate Debtor allegedly engaged in construction activities and offered equity as security for the loan. The Financial Creditor transferred funds through various means, including personal and firm accounts, as well as cash payments. The Corporate Debtor acknowledged the receipt of funds via email dated 2023-01-10 but defaulted on payments since 2023-03-14. A cheque issued by the

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## Issues and analysis

### Issue 1: Whether there exists a financial debt exceeding …

**Ratio:** The principle that the petitioner must approach the court with clean hands and comply

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**Reasoning:** The court found that the petitioner failed to properly serve notice to the Corporate

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**Interpretation:** The court interpreted the requirements of Section 7 of the IBC and the IBBI

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**Application:** The court applied the principle that the petitioner must approach the court

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Karne Rames…
- **Respondents:** Kalzen Contech…

## Timeline

- **2023-01-10 — Corporate Debtor…**: The Corporate Debtor acknowledged the…
- **2023-03-14 — Date of D…**: The Corporate Debtor defaulted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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