# In the matter of Fortuna Projects (India) Private Limited C.P. (IB) No. 131-BB-2017

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-01999. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-01999
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fortuna-projects-india-private-limited-cp-ib-no-131-bb-2017-9c0e5de4

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by Reliance Capital AIF Trustee Company Private Limited (Financial Creditor) against Fortuna Projects (India) Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default in payment of Rs. 59,42,52,495/- by the Corporate Debtor. The Corporate Debtor, Fortuna Projects (India) Private Limited, had provided a corporate guarantee for the debenture outstanding of Fortuna Buildcon India Private Limited (FBIPL). The financial creditor had lent Rs.46,05,00,000/- to Fortuna Buildcon India Private Limited by subscribing to/purchasing 46,05,000 senior secured redeemable non-convertible debentures

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## Facts

1. Reliance Capital AIF Trustee Company Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Fortuna Projects (India) Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP).
2. The Financial Creditor claimed that the Corporate Debtor defaulted in payment of Rs. 59,42,52,495/-, comprising principal, accrued interest, redemption premium, additional interest, and default interest as on 31.03.2017, along with 21.50% IRR.
3. The Financial Creditor had lent Rs.46,05,00,000/- to Fortuna Buildcon India Private Limited (FBIPL) by subscribing to/purchasing 46,05,000 senior secured redeemable non-convertible debentures of Rs.100/- each issued by FBIPL for a total

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## Issues and analysis

### Issue 1: Whether the debt and default in question is proved/established with adequate evidence as required …

**Ratio:** Section 7 of the IBC requires the Adjudicating Authority to ascertain the existence of a

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**Reasoning:** The Adjudicating Authority perused the Application/Petition and the documents filed in

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**Interpretation:** Section 7 of the IBC provides the framework for initiating CIRP by a financial

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**Application:** The Adjudicating Authority found that the documents filed by the Financial

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Reliance Capital…
- **Respondents:** Fortuna Projects…

## Timeline

- **2017-11-23 — Hearing…**: Case listed for…
- **2017-12-01 — Hearing…**: Case listed for…

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