# In the matter of REIN Constructions Private Limited (IB)-2836 (ND)2019

> NCLT judgment dated 2023-05-18. Citation: TCN-2023-NCLT-03277. Welldone Estate Projects Private Limited filed a petition under Section 9 of the IBC, 2016,…

- **Court:** NCLT
- **Order date:** 18 May 2023
- **Citation:** TCN-2023-NCLT-03277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rein-constructions-private-limited-ib-2836-nd2019-9961d96f

## Summary

### Background

Welldone Estate Projects Private Limited filed a petition under Section 9 of the IBC, 2016, seeking to initiate CIRP against Rein Constructions Private Limited, claiming an operational debt of Rs. 2,99,00,000/- along with 12% interest per annum. The claim arose from a settlement agreement dated 11.01.2012, involving multiple parties, including Arora Associates and Infradevelopers Private Limited, Arora and Associates Realty Limited, Kanwarjeet Arora, Rajesh Arora, Rein Constructions Private Limited, Welldone Estate Projects Private Limited, and Welldone Infrastructure Private Limited. The applicant claimed that the corporate debtor was liable to pay Rs. 2,85,07,562/- as interest up to the date of issuance of notice. The corporate debtor disputed the debt, arguing that

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## Facts

Welldone Estate Projects Private Limited (Applicant) filed a petition under Section 9 of the IBC, 2016, to initiate CIRP against Rein Constructions Private Limited (Corporate Debtor). The Applicant claimed an operational debt of Rs. 2,99,00,000/- plus 12% interest per annum, arising from a settlement agreement dated 11.01.2012. This agreement involved multiple parties, including Arora Associates and Infradevelopers Private Limited, Arora and Associates Realty Limited, Kanwarjeet Arora, Rajesh Arora, Rein Constructions Private Limited, Welldone Estate Projects Private Limited, and Welldone Infrastructure Private Limited. The Applicant alleged that the Corporate Debtor owed Rs. 2,85,07,562/- as interest up to the date of notice. The Corporate Debtor disputed the debt,

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## Issues and analysis

### Issue 1: Whether the claim of the Applicant constitutes an 'operational debt' as defined under Section 5(21) …

**Ratio:** Section 5(21) of the IBC, 2016, defines 'operational debt' as a claim in respect of the

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**Reasoning:** The NCLT observed that the claim arose from a settlement agreement related to an

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**Interpretation:** The definition of 'operational debt' under Section 5(21) of the IBC requires a

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**Application:** In this case, the Applicant's claim stemmed from an investment in a real estate

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Welldone Estate…
- **Respondents:** REIN Constructions…

## Timeline

- **2012-01-11 — Settlement Ag…**: A settlement agreement was arrived at between M/s. Arora Associates and Infradevelopers…
- **2012-01-12 — Part Payment by…**: Corporate Debtor made…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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