# In the matter of KLT Automotive and Tublar Products Limited

> NCLT judgment dated 2024-09-26. Citation: TCN-2024-NCLT-00533. The case involves a petition filed by Phoenix ARC Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 26 Sept 2024
- **Citation:** TCN-2024-NCLT-00533
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/klt-automotive-and-tublar-products-limited-46765078

## Summary

### Background

The case involves a petition filed by Phoenix ARC Private Limited, the Financial Creditor/Petitioner, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against KLT Automotive and Tublar Products Limited, the Corporate Debtor/Respondent. The petition was filed due to the Corporate Debtor's default in repayment of Rs. 9,68,20,63,285/-. The debt was initially assigned by Bank of India, KKR India Financial Services Limited, and Corporation Bank to Phoenix Trust FY 19 - 11, Phoenix Trust FY 19 - 13, and Phoenix Trust FY 19 - 20 respectively. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) with effect from 31.03.2015. Several attempts were made to restructure and settle the debts

…

## Facts

Phoenix ARC Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against KLT Automotive and Tublar Products Limited due to a default of Rs. 9,68,20,63,285/-. The debt originated from credit facilities extended by Bank of India, KKR India Financial Services Limited, and Corporation Bank, which were later assigned to Phoenix Trust FY 19 - 11, Phoenix Trust FY 19 - 13, and Phoenix Trust FY 19 - 20 respectively. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.03.2015. Several attempts to restructure the debt through Letters of Acceptance (LoA) failed. The Corporate Debtor acknowledged the debt in a Tripartite Assignment Agreement dated

…

## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** A final judgment and order/decree is binding on the judgment debtor. Once a claim

…

**Reasoning:** The Tribunal relied on the Supreme Court's judgment in Dena Bank Vs. C. Shivakumar Reddy

…

**Interpretation:** The Recovery Certificate obtained from the DRT is considered a valid and

…

**Application:** In this case, the Financial Creditor obtained a Recovery Certificate from the

…

## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Phoenix Arc…
- **Respondents:** KLT Automotive…

## Timeline

- **2015-03-31 — Account decla…**: The account of the Corporate Debtor was declared a Non-Performing Asset with effect from…
- **2019-01-24 — Tripartite Assignment…**: The debt owed by the Corporate Debtor to Bank of India was assigned to the Petitioner…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/klt-automotive-and-tublar-products-limited-46765078