# In the matter of K.S.N. Buildwell Private Limited Company Petition No. (IB)-552 (ND)-2021

> NCLT judgment dated 2022-05-13. Citation: TCN-2022-NCLT-02742. The case involves an application filed by Omkara Assets Reconstruction Private Limited, the…

- **Court:** NCLT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLT-02742
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ksn-buildwell-private-limited-company-petition-no-ib-552-nd-2021-c54594f4

## Summary

### Background

The case involves an application filed by Omkara Assets Reconstruction Private Limited, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against K.S.N Buildwell Private Limited, the corporate debtor. The application is based on the corporate debtor's default in repaying a loan availed from the financial creditor.

## Facts

Omkara Assets Reconstruction Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against K.S.N Buildwell Private Limited. K.S.N Buildwell Private Limited, the corporate debtor, availed financial assistance of Rs. 20 crore on 2018-08-14 from Omkara Assets Reconstruction Private Limited against the security of their project 'Sarvottam Pride'. The corporate debtor defaulted in repaying the loan, with a sum of Rs. 27,31,24,503/- claimed as due and payable. The counsel for the corporate debtor refused to file a reply and argued orally, failing to prove that no debt was payable. The applicant proposed the name of Mr. Anil Matta as Interim Resolution Professional. The

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## Issues and analysis

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

**Ratio:** An application under Section 7 of the Code is maintainable if the debt is proved to be

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**Reasoning:** The court noted that the applicant had placed sufficient material on record to prove that

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial

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**Application:** The court found that the debt was due, the default exceeded Rupees One Crore,

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## Parties

- **Judges:** DHARMINDER…; SUMITA PURK…; +1 more
- **Appellants:** Omkara Assets…
- **Respondents:** K.S.N Buildwell…

## Timeline

- **2016-01-01 — Insolvency and…**: The application was filed under Section 7 of…
- **2018-08-14 — Financial Assistance…**: K.S.N Buildwell Private Limited availed…

## Legal provisions

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

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