# In the matter of Khaitan Electricals Limited

> NCLT judgment dated 2025-03-20. Citation: TCN-2025-NCLT-00341. The case involves IA(IBC)/508/2021 and IA(IBC)/641/2021, both filed in CP(IB)…

- **Court:** NCLT
- **Order date:** 20 Mar 2025
- **Citation:** TCN-2025-NCLT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khaitan-electricals-limited-a7f5e732

## Summary

### Background

The case involves IA(IBC)/508/2021 and IA(IBC)/641/2021, both filed in CP(IB) No.326/7/HDB/2018, concerning a disputed property. Khaitan Electricals Ltd., the Corporate Debtor (CD), entered Corporate Insolvency Resolution Process (CIRP) on 28th November 2018. As no resolution plan was received, liquidation was initiated on 23rd August 2019. Prior to CIRP, Mr. Akhil Ahmed and his wife Ms. Tarannum executed an agreement on 23.12.2013 to purchase land from the CD 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 the CD handed over the original title deeds to RFL on 23.01.2014.

## Facts

Khaitan Electricals Ltd. entered CIRP on 28.11.2018, followed by liquidation on 23.08.2019. Prior to CIRP, Akhil Ahmed and Tarannum entered into a sale agreement on 23.12.2013 to purchase land from Khaitan Electricals for ₹1.81 crores, with a payment deadline of July 2014. Religare Finvest Ltd. sanctioned a loan of ₹10,00,00,000/- to Khaitan Electricals on 26.12.2013, and the title deeds were handed over to Religare on 23.01.2014. Akhil Ahmed informed Khaitan Electricals on 16.07.2014 that the final payment would be made by October 2014, with a cancellation clause if not paid by 31.12.2014. The Liquidator discovered 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

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## Issues and analysis

### Issue 1: Whether the sale agreement dated 23.12.2013 between Mr. Akhil Ahmed and Khaitan Electricals Ltd. is …

**Ratio:** Agreements for the sale of immovable property can be oral or written, but their legal

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**Reasoning:** The court found that the sale agreement was unregistered and executed just three days

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**Interpretation:** The court interpreted that since the sale agreement was unregistered, the

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**Application:** Applying the ratio to the facts, the court concluded that the sale agreement is

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## Parties

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

## Timeline

- **2013-12-23 — Sale Agre…**: Mr. Akhil Ahmed and Ms. Tarannum executed…
- **2013-12-26 — Loan San…**: Religare Finvest Limited sanctioned a loan 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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