# In the matter of IDBI Trusteeship Services Limited Vs. Kashyap K. Mehta, CP (IB) -255/MB/2021

> NCLT judgment dated 2021-08-03. Citation: TCN-2021-NCLT-01493. The case involves an application filed under Section 95 of the I&B Code, 2016, read with Rule…

- **Court:** NCLT
- **Order date:** 3 Aug 2021
- **Citation:** TCN-2021-NCLT-01493
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/idbi-trusteeship-services-limited-vs-kashyap-k-mehta-cp-0d32957a

## Summary

### Background

The case involves an application filed under Section 95 of the I&B Code, 2016, read with Rule 7(2) of the I&B (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. IDBI Trusteeship Services Limited, acting as the debenture trustee for ICICI Prudential Real Estate AIF-I, filed the application against Mr. Kashyap K. Mehta, the personal guarantor of Sunshine Housing and Infrastructure Private Limited (SHIPL). SHIPL had received a disbursement of Rs. 40,00,00,000/- from ICICI Prudential Real Estate AIF I by issuing 4,000 unlisted, unrated, secured, redeemable non-convertible debentures pursuant to a Debenture Subscription Agreement dated 06.09.2016. SHIPL was admitted into Corporate

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## Facts

ICICI Prudential Real Estate AIF I disbursed Rs. 40,00,00,000/- to Sunshine Housing and Infrastructure Private Limited (SHIPL) by subscribing to 4,000 unlisted, unrated, secured, redeemable non-convertible debentures. This was done pursuant to a Debenture Subscription Agreement dated 06.09.2016. The debentures had a face value of Rs. 1,00,000/- each. The debt obligation arose out of a personal guarantee dated 07.09.2016 issued by Mr. Kashyap K. Mehta, the Personal Guarantor, in favor of the Debenture Trustee to secure the debentures issued by SHIPL. The Debenture Trust Deed was dated 26.10.2016. SHIPL was admitted into Corporate Insolvency Resolution Process (CIRP) by an NCLT Mumbai Order dated 08.05.2019. The total amount in default under the Personal Guarantee as on

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## Issues and analysis

### Issue 1: Whether the application filed by IDBI Trusteeship Services Limited under Section 95 of the I&B …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016 read with Rule 7(2) of the IBC

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**Reasoning:** The Bench considered the submissions made by the Applicant and the documents produced.

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The applicant, IDBI Trusteeship Services Limited, followed the prescribed

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## Parties

- **Judges:** SUCHITRAKAN…; Chandra Bha…
- **Appellants:** IDBI Trusteeship…
- **Respondents:** Sunshine Housing…; Kashyap K.…

## Timeline

- **2016-09-06 — Debenture Subscription…**: Debenture Subscription Agreement between ICICI Prudential Real Estate AIF I and Sunshine…
- **2016-09-07 — Personal Gu…**: Mr. Kashyap K. Mehta issued a personal guarantee in favor of the Debenture Trustee to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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