# In the matter of Gangadhar A. Kotian vs. Catalyst Trusteeship Ltd. and Anr.

> NCLAT judgment dated 2025-07-09. Citation: TCN-2025-NCLAT-00325. The appeal arises from an order dated 24.04.2025 passed by the Adjudicating Authority (NCLT,…

- **Court:** NCLAT
- **Order date:** 9 Jul 2025
- **Citation:** TCN-2025-NCLAT-00325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gangadhar-a-kotian-vs-catalyst-trusteeship-ltd-and-anr-55194656

## Summary

### Background

The appeal arises from an order dated 24.04.2025 passed by the Adjudicating Authority (NCLT, Mumbai Bench-II) in C.P. (IB) No. 646(MB)/2024, which admitted a Section 7 application filed by Catalyst Trusteeship Ltd-Financial Creditor against Bombay Rayon Clothing Ltd.

## Facts

A Debenture Trustee Agreement (DTA) was executed on 12.10.2017 between Reynold Shirting Limited and Catalyst Trusteeship Ltd.

A Debenture Trust Deed (DTD) was signed on 14.10.2017 between the Principal Borrower and the Debenture Trustee-Financial Creditor.

Bombay Rayon Clothing Ltd. executed a Guarantee Agreement in favor of the Financial Creditor on 14.10.2017.

The Principal Borrower defaulted, and the Respondent No.1 classified the NCDs as NPA on 16.06.2020.

Respondent No.1 filed a Section 7 application on 15.03.2022 seeking initiation of CIRP of the Principal Borrower.

An Assignment Agreement dated 23.12.2022 was executed between CFM ARC and Edelweiss Asset Reconstruction Company Limited.

…

## Issues and analysis

### Issue 1: Whether the Section 7 application was …

**Ratio:** Section 10A does not apply to any default that occurs subsequent to the expiry of the

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**Reasoning:** The relevant default occurred on 25 March 2023, which was well beyond the outer limit of

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**Interpretation:** Section 10A provides temporary relief during the COVID-19 pandemic and does not

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**Application:** The Appellant expressly admitted debt and default in their pleadings, and the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Gangadhar A.…
- **Respondents:** Bombay Rayon…; Catalyst Trusteesh…; +1 more
- **Other parties:** Ayush J.…
- **Advocates:** Krishnendu…; Shashank P…; +6 more

## Timeline

- **2017-10-12 — Execution…**: A Debenture Trustee Agreement (DTA) was executed between Reynold Shirting Limited and…
- **2017-10-14 — Signing o…**: A Debenture Trust Deed (DTD) was signed between the Principal Borrower and the Debenture…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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