# In the matter of K.K. Welding Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02214. Shaikh Mahboob Subani & Anr. filed an application (IA No. 903/2023) in the liquidation process…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kk-welding-limited-44d54918

## Summary

### Background

Shaikh Mahboob Subani & Anr. filed an application (IA No. 903/2023) in the liquidation process of K.K. Welding Limited ("Corporate Debtor") under the Insolvency and Bankruptcy Code, 2016, seeking to exclude a property from the liquidation estate and to retrieve original documents. Applicant No. 1, the proprietor of M/s Wed Enterprises, constructed the Ground Floor and First Floor in the building Flora Avenue on non-agricultural land. He agreed to sell Flat No. 001 and Flat No. 101 to Applicant No. 2 for Rs. 60,00,000/- via an Agreement for Sale dated 29.12.2008, making them co-owners. Applicant No. 1 approached the Corporate Debtor for financial assistance of Rs. 3,00,00,000/- to pay off creditors, and the Corporate Debtor granted the loan at 4% interest

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## Facts

Shaikh Mahboob Subani and Firoz Shaikh Subani (Applicants) filed IA No. 903/2023 in the liquidation of K.K. Welding Limited (Corporate Debtor). Applicant No. 1, proprietor of M/s Wed Enterprises, built the Ground and First Floors of Flora Avenue. He agreed to sell Flat No. 001 and 101 to Applicant No. 2 for Rs. 60,00,000/- via an Agreement for Sale dated 29.12.2008, making them co-owners. Applicant No. 1 sought Rs. 3,00,00,000/- from the Corporate Debtor for debt repayment, with a 4% monthly interest rate, documented by an Agreement for Sale, Deed of Equitable Mortgage, and MoU. An Agreement for Sale dated 26.04.2012 was executed for Rs. 4,65,00,000/-, but Rs. 1,65,00,000/- was returned to the Corporate Debtor, excluding interest. The Corporate Debtor was to hold title

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to …

**Ratio:** Section 60(5) of the Insolvency and Bankruptcy Code (IBC) provides the Adjudicating

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**Reasoning:** The Tribunal relied on the NCLAT's decision in Ramesh Singh Rawat vs. SPG Global

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**Interpretation:** The NCLT interprets Section 60(5) of the IBC as granting it the jurisdiction to

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**Application:** The Tribunal applied the ratio from Ramesh Singh Rawat vs. SPG Global

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## Parties

- **Judges:** SH. Justice…; SH. PRABHAT…
- **Appellants:** Shaikh Mahboob…
- **Respondents:** K.K. Welding…; Liquidator of K K…

## Timeline

- **2008-12-29 — Agreement f…**: Applicant No. 1 agreed to sell Flat No. 001 and Flat No. 101 to Applicant No. 2 for Rs.…
- **2012-04-26 — Agreement f…**: Applicant No. 1 executed an Agreement for Sale in favor of the Corporate Debtor for Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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