# In the matter of Greens Farm Tech Private Limited C.P. (IB)No. 304-BB-2019

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01862. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01862
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/greens-farm-tech-private-limited-cp-ibno-304-bb-2019-a17578ae

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the I&B (Application to Adjudicating Authority) Rules, 2016, by Mr. Mayank Harshad Talati & Anr. (Financial Creditors) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Greens Farm Tech Private Limited (Corporate Debtor). The Financial Creditors are debenture holders who invested in Non-Convertible Debentures (NCDs) issued by the Corporate Debtor. The Corporate Debtor defaulted on payments of interest and principal amount to the debenture holders.

## Facts

Mr. Mayank Harshad Talati & Anr. are debenture holders (Financial Creditors) of M/s. Greens Farm Tech Private Limited (Corporate Debtor). The Corporate Debtor is a private limited company incorporated on 02.02.2009, engaged in the business of growing and selling agricultural produce. In June 2014, the Corporate Debtor issued Non-Convertible Debentures (NCDs) to fund the acquisition and development of coffee estates and land parcels. The total size of the NCD issue was Rs. 17 Crores, with each NCD worth Rs. 10,000. Each debenture holder was entitled to interest at 20.5% per annum, paid quarterly, with a term of 48 months and principal repayment in 11 quarterly installments from the 18th month. Karvy Capital Ltd. was the Debenture Holder's Representative and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repaying the debt owed to the Financial …

**Ratio:** The Adjudicating Authority must satisfy itself that a 'default' has occurred, even if the

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**Reasoning:** The Adjudicating Authority examined the financial statements of the Corporate Debtor,

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**Interpretation:** The term 'default' under the IBC, 2016, refers to the non-payment of debt when

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**Application:** In this case, the Corporate Debtor failed to repay the principal and interest

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Mayank Harshad…
- **Respondents:** M/s. Greens Farm…

## Timeline

- **2014-06-01 — Issuance o…**: The Corporate Debtor issued Non-Convertible Debentures (NCDs) to fund the acquisition and…
- **2015-06-19 — Investment by…**: Petitioner No.1 invested…

## 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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