# In the matter of Weststar Constructions Private Limited

> NCLT judgment dated 2025-02-14. Citation: TCN-2025-NCLT-00484. Kaliber Associates Pvt. Ltd., through its liquidator, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 Feb 2025
- **Citation:** TCN-2025-NCLT-00484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/weststar-constructions-private-limited-4211d3dc

## Summary

### Background

Kaliber Associates Pvt. Ltd., through its liquidator, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against West Star Constructions Pvt. Ltd., claiming a default on a financial debt of Rs. 1 crore. The financial statements of the applicant/financial creditor as on 31.03.2018 reflected a certain amount of loan and advances payable by the corporate debtor. The date of default was mentioned as 18.07.2019. The petitioner also placed on record the default certificate/report procured from NeSL. The Adjudicating Authority admitted the application and initiated the Corporate Insolvency Resolution Process (CIRP).

## Facts

Kaliber Associates Pvt. Ltd. (Financial Creditor) filed a petition under Section 7 of the IBC against West Star Constructions Pvt. Ltd. (Corporate Debtor) claiming a default on a financial debt of Rs. 1 crore. The debt was disbursed on 20.11.2010 vide Cheque No. 32001426. The date of default was mentioned as 18.07.2019. The Financial Creditor submitted that the amount of Rs. 1 crore was reflected in the balance sheets of both parties. The Corporate Debtor argued that the amount was a security deposit for services to be rendered by the Financial Creditor, not a financial debt. The Corporate Debtor also claimed that the petition was barred by limitation. The Corporate Debtor submitted that the amount of Rs. 1 crore should be covered under the head of trades payable. The

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority appropriately considered the nature of the debt before admitting …

**Ratio:** The Adjudicating Authority must examine the real nature of the transaction to determine

…

**Reasoning:** The NCLAT found that the Adjudicating Authority relied solely on the NeSL report and did

…

**Interpretation:** The Adjudicating Authority must conduct a thorough examination of the

…

**Application:** In this case, the NCLAT found that the Adjudicating Authority did not

…

## Parties

- **Judges:** Sh. Ashok Kumar…; Charanjeet Singh…
- **Appellants:** Kaliber Associates…
- **Respondents:** West Star…

## Timeline

- **2010-10-01 — Engagement of…**: Corporate Debtor approached and engaged Operational Creditor for specific research…
- **2010-11-20 — Advance P…**: Corporate Debtor made an advance payment of ₹1,00,00,000/- (excluding taxes) to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/weststar-constructions-private-limited-4211d3dc