# In the matter of Malavika Hegde Vs Idbi Trusteeship Services Limited

> NCLAT judgment dated 2024-08-14. Citation: TCN-2024-NCLAT-00737. The Appellant, Malavika Hedge, challenges the Impugned Order rendered in CP(IB)…

- **Court:** NCLAT
- **Order date:** 14 Aug 2024
- **Citation:** TCN-2024-NCLAT-00737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/malavika-hegde-vs-idbi-trusteeship-services-limited-d6b405d3

## Summary

### Background

The Appellant, Malavika Hedge, challenges the Impugned Order rendered in CP(IB) No.152/BB/2023, which admitted the application for initiation of CIRP under Section 7 of the I & B Code filed by the Respondent, IDBI Trusteeship Services Ltd.

## Facts

The Appellant challenges the Impugned Order admitting the CIRP application.

The CIRP application was filed under Section 7 of the I&B Code.

The Appellant argues non-compliance with Clause 10 of the Debenture Trust Deed.

Clause 10 requires consent from Debenture Holders before taking action.

The Respondent's Rejoinder lacked specific denial regarding compliance with Clause 10.1(b).

A Director's resolution was passed on 02.02.2024 ratifying the Debenture Trustee's action.

The resolution was passed after the initiation of proceedings under Section 7.

The Tribunal noted that the subsequent ratification cannot justify the satisfaction of the condition contained under Clause 10.1(b) of the Trust Deed.

## Issues and analysis

### Issue 1: Whether the Impugned Order is in non-compliance with the procedure agreed in the Debenture Trust …

**Ratio:** The Tribunal is of the tentative view that the Impugned Order suffers from vices for the

…

**Reasoning:** The Tribunal observed that the Rejoinder lacked specific denial regarding compliance with

…

**Interpretation:** The Tribunal interprets that the notification only confers an authorization on

…

**Application:** The Tribunal applies this interpretation to the present case, stating that the

…

## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** Malavika…
- **Respondents:** Coffee Day…; IDBI Trusteeship…
- **Advocates:** P.H. Arvindh…; Lakshana Vi…; +2 more

## Timeline

- **2023-09-01 — Initiation of…**: Proceedings under Section 7…
- **2024-02-02 — Director's Re…**: A Director's resolution was passed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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