# In the matter of Sanjay Pandurang Kalate & Ors. vs. Vistra ITCL (India) Ltd. & Ors.

> NCLAT judgment dated 2023-10-05. Citation: TCN-2023-NCLAT-00143. The appeal arises from an order dated 19.05.2023 passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 5 Oct 2023
- **Citation:** TCN-2023-NCLAT-00143
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sanjay-pandurang-kalate-ors-vs-vistra-itcl-058104d6

## Summary

### Background

The appeal arises from an order dated 19.05.2023 passed by the National Company Law Tribunal (NCLT), Mumbai Bench-V, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by Vistra ITCL (India) Ltd., initiating the Corporate Insolvency Resolution Process (CIRP) against Evirant Developers Pvt. Ltd. The appellant, Sanjay Pandurang Kalate, the suspended director of the corporate debtor, filed the appeal against this order, alleging collusion and fraudulent intent in the filing of the Section 7 application.

## Facts

Sanjay Pandurang Kalate, along with his father and brothers, collaborated with Respondents No.2 and 3 to develop residential and commercial projects in Pune. Subsequently, on 09.10.2018, they incorporated EDPL-Corporate Debtor to develop Project Panorama and Project Vedanta in Wakad, Pune. The Corporate Debtor authorized the issuance of 5790 fully secured, redeemable, non-convertible debentures (NCDs) with a par value of Rs.1 lakh each through private placement. Vistra ITCL was appointed as the Debenture Trustee on 26.11.2018. Debenture holders, including India Realty Excellence Fund III and IV managed by Motilal Oswal Financial Services Ltd., invested Rs.34,41,00,000/-. The Corporate Debtor defaulted on payments, leading the Respondent No.1 to issue a Put-Option

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by the …

**Ratio:** Under the IBC, once a debt becomes due and payable, and there is non-payment, CIRP may be

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**Reasoning:** The Corporate Debtor admitted to the financial debt and default and did not contest the

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**Interpretation:** The IBC allows for the initiation of CIRP when a financial debt is due and

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**Application:** The Corporate Debtor failed to redeem the NCDs and repay the due amount, which

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Sanjay Pandurang…
- **Respondents:** Evirant Developers…; Vistra ITCL…
- **Advocates:** Abhinav V…; Kushal B…; +10 more

## Timeline

- **2018-10-09 — Incorporation…**: EDPL-Corporate Debtor was incorporated to…
- **2018-11-26 — Appointment of…**: Vistra ITCL was appointed…

## 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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