# In the matter of Zubin Bharucha vs. Reliance AIF Management Company Ltd. & Ors. Company Appeal (AT) (Ins) No. 504 of 2021

> NCLAT judgment dated 2023-04-12. Citation: TCN-2023-NCLAT-00628. The appeal was filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) by…

- **Court:** NCLAT
- **Order date:** 12 Apr 2023
- **Citation:** TCN-2023-NCLAT-00628
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/zubin-bharucha-vs-reliance-aif-management-company-ltd-ors-company-appeal-07502093

## Summary

### Background

The appeal was filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Appellant, Mr. Zubin Bharucha, who was aggrieved by the order dated 06.05.2021 of the Adjudicating Authority (National Company Law Tribunal, Court No. V, Mumbai Bench). The Adjudicating Authority admitted a Section 7 application filed by the Respondents No. 1 and 2, Reliance AIF Management Company Ltd. and Reliance Nippon Life Asset Management Limited, before NCLT, Mumbai, initiating the Corporate Insolvency Resolution Process (CIRP) against Bharucha & Motivala Infrastructure Private Limited. The case revolves around a corporate guarantee given by Bharucha & Motivala Infrastructure Private Limited (B & M Infra) as a Co-Obligor in respect of a residential

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## Facts

Mr. Zubin Bharucha, the former director of Bharucha & Motivala Infrastructure Pvt. Ltd. (B & M Infra), filed an appeal against the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The application was filed by Reliance AIF Management Company Ltd. and Reliance Nippon Life Asset Management Limited (Debenture Holders) before the NCLT, Mumbai, which initiated Corporate Insolvency Resolution Process (CIRP) against B & M Infra. B & M Infra had provided a corporate guarantee as a co-obligor for a residential project called 'The Cove' developed by Lake District Realty Private Limited (LDRPL). LDRPL issued Non-Convertible Debentures (NCDs) to raise funds, which were subscribed by the Debenture Holders. A Debenture Trust Deed

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## Issues and analysis

### Issue 1: Whether the Debenture Holders, namely, the Respondents No. 1 and 2 are Financial Creditors in the …

**Ratio:** Section 5(8)(c) and Section 5(8)(i) of the IBC define 'financial debt' to include amounts

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**Reasoning:** The court reasoned that the Debenture Trust Deed (DTD) was entered into between various

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**Interpretation:** The court interpreted the relevant provisions of the IBC and the terms of the

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**Application:** The court applied the legal principles and interpretations to the specific

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## Parties

- **Judges:** Rakesh…; Alok Sriv…
- **Appellants:** Zubin Bha…
- **Respondents:** Bharucha &…; Reliance AIF…
- **Advocates:** Arun Sri…; Neha M…; +5 more

## Timeline

- **2016-10-06 — Debenture Tru…**: Debenture Trust Deed…
- **2017-11-01 — Government Not…**: Notification issued by the Government of Maharashtra, stopping construction within 100…

## 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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