# In the matter of Khaitan Electricals Limited

> NCLT judgment dated 2025-03-20. Citation: TCN-2025-NCLT-00340. Khaitan Electricals Ltd. entered CIRP on November 28, 2018, due to the absence of a resolution…

- **Court:** NCLT
- **Order date:** 20 Mar 2025
- **Citation:** TCN-2025-NCLT-00340
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khaitan-electricals-limited-a32dfa97

## Summary

### Background

Khaitan Electricals Ltd. entered CIRP on November 28, 2018, due to the absence of a resolution plan, liquidation was initiated on August 23, 2019. Prior to CIRP, Akhil Ahmed and his wife Tarannum executed a sale agreement on December 23, 2013, to purchase land from Khaitan Electricals for ₹1.81 crores, with a payment deadline of July 2014. A loan of ₹10,00,00,000/- was sanctioned by Religare Finvest Limited (RFL) on December 26, 2013, and a facility agreement was executed on January 11, 2014. The title deeds were handed over to Religare Finvest Limited on January 23, 2014.

## Facts

Khaitan Electricals Ltd. (Corporate Debtor) entered CIRP on 28.11.2018. Liquidation was initiated on 23.08.2019. Prior to CIRP, Akhil Ahmed and his wife Tarannum entered into a sale agreement on 23.12.2013 with Khaitan Electricals for land purchase for ₹1.81 crores, with a payment deadline of July 2014. A loan of ₹10,00,00,000/- was sanctioned by Religare Finvest Limited (RFL) on 26.12.2013, and a facility agreement was executed on 11.01.2014. The title deeds were handed over to Religare Finvest Limited on 23.01.2014. Akhil Ahmed failed to pay the entire amount within the stipulated period. The Liquidator found a letter dated 28.10.2018 and a post-dated cheque dated 28.02.2019 for Rs. 28,91,700/- in the desk of Mr. R. Lohariwala, the erstwhile Chief Executive Officer

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## Issues and analysis

### Issue 1: Whether the sale agreement between Akhil Ahmed and …

**Ratio:** An unregistered sale agreement does not confer title and cannot be specifically enforced.

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**Reasoning:** The agreement was unregistered and executed just three days before the loan facility was

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**Interpretation:** The court interprets the provisions of the Transfer of Property Act and the

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**Application:** Since the sale agreement was unregistered and the full consideration was not

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Kamalesh Kumar…
- **Respondents:** Khaitan Electrical…; Bank of…

## Timeline

- **2013-12-23 — Sale Agre…**: Akhil Ahmed and his wife Tarannum executed a sale agreement with Khaitan Electricals for…
- **2013-12-26 — Loan San…**: Religare Finvest Limited sanctioned a loan of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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