# In the matter of Khandelwal Buildcon Private Limited CP No. (IB)- 38-7-JPR-2022

> NCLT judgment dated 2023-06-01. Citation: TCN-2023-NCLT-03105. The case involves an application filed by Smt. Mohini Devi, proprietor of Khandelwal…

- **Court:** NCLT
- **Order date:** 1 Jun 2023
- **Citation:** TCN-2023-NCLT-03105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khandelwal-buildcon-private-limited-cp-no-ib-38-7-jpr-2022-1785ba92

## Summary

### Background

The case involves an application filed by Smt. Mohini Devi, proprietor of Khandelwal Constructions and Building Materials (Financial Creditor), against Khandelwal Buildcon Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly defaulted on a loan repayment to the Financial Creditor. The Corporate Debtor is engaged in the business of running hotels, gardens for marriages, and other functions. In 2013, the Corporate Debtor approached the Applicant for financial assistance, leading to a loan agreement dated 31.01.2013 for Rs. 1,28,50,000/- at 18% interest per annum. The repayment was agreed to be made within three years, but no

…

## Facts

Smt. Mohini Devi, proprietor of Khandelwal Constructions and Building Materials, is the Financial Creditor. Khandelwal Buildcon Private Limited is the Corporate Debtor, engaged in the business of running hotels and gardens. In 2013, the Corporate Debtor sought financial assistance from the Financial Creditor. A loan agreement was executed on 31.01.2013 for Rs. 1,28,50,000/- with an 18% annual interest rate. The Corporate Debtor was to repay the loan within three years. No repayment of either principal or interest was made. The Financial Creditor issued a letter on 05.02.2016 demanding repayment. The Corporate Debtor acknowledged the liability via a letter dated 25.02.2016 and requested an extension. The Corporate Debtor and Applicant entered into a Consent Letter

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 for initiation …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

…

**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had defaulted on the repayment

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues by

…

**Application:** The Adjudicating Authority determined that the application was maintainable

…

## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Mohini…
- **Respondents:** Khandelwal…; M/s Khandelwal…

## Timeline

- **2013-01-31 — Loan Agre…**: Applicant and Corporate Debtor entered into a loan agreement for Rs. 1,28,50,000/- at 18%…
- **2016-02-05 — Repayment…**: Applicant issued a letter to the Corporate Debtor to repay the entire principal amount…

## 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-division-bench-court-i-chenn/khandelwal-buildcon-private-limited-cp-no-ib-38-7-jpr-2022-1785ba92