# In the matter of Ind-Barath Energy (Utkal) Limited CP (IB) No. 276-7-HDB-2018

> NCLT judgment dated 2018-08-29. Citation: TCN-2018-NCLT-00874. The document pertains to two Company Petition (Insolvency & Bankruptcy) cases before the…

- **Court:** NCLT
- **Order date:** 29 Aug 2018
- **Citation:** TCN-2018-NCLT-00874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ind-barath-energy-utkal-limited-cp-ib-no-276-7-hdb-2018-4bf1f1dd

## Summary

### Background

The document pertains to two Company Petition (Insolvency & Bankruptcy) cases before the National Company Law Tribunal (NCLT), Hyderabad Bench. CP(IB) No. 192/7/HDB/2018 was filed by MAIF Investments India Pte. Ltd. against Ind-Barath Energy (Utkal) Limited, while CP(IB) No. 276/7/HDB/2018 was filed by Bank of Baroda against the same Corporate Debtor. The cases involve financial debt and default, with disputes arising from Investment and Subscription Agreements. The Corporate Debtor is facing inter-management disputes due to the conversion of compulsory convertible debentures in favor of MAIF Investment India Private Limited. The cases involve complex financial arrangements, including Optionally Convertible Debentures (OCD) and Non-Convertible Debentures (NCD).

## Facts

Ind-Barath Energy (Utkal) Limited, the Corporate Debtor, faced two insolvency petitions. MAIF Investments India Pte. Ltd. (MAIF-1) filed CP(IB) No. 192/7/HDB/2018, claiming default under Investment and Subscription Agreements. Bank of Baroda filed CP(IB) No. 276/7/HDB/2018, asserting a term loan default. MAIF-1's claim stemmed from agreements involving Optionally Convertible Debentures (OCD) and Non-Convertible Debentures (NCD). A key point of contention was the invocation of pledged shares and conversion of CCDs into equity by MAIF-1. The Corporate Debtor's authorized share capital was INR 14,00,00,00,000, with a paid-up share capital of INR 10,32,40,00,000. An Investment Agreement dated 25.06.2015 outlined investments made by MAIF-1 in the Corporate Debtor. A

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## Issues and analysis

### Issue 1: Whether the petition filed by MAIF Investments India Pte. Ltd. under Section 7 of the IBC is …

**Ratio:** A financial creditor can initiate CIRP under Section 7 of the IBC if a default has

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**Reasoning:** The Tribunal reasoned that MAIF's invocation of pledged shares and conversion of CCDs

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**Interpretation:** The interpretation hinges on whether the actions taken by MAIF effectively

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**Application:** The ratio and reasoning were applied to the specific facts of MAIF's actions,

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Maif Investment…
- **Respondents:** Ind-Barath Energy…

## Timeline

- **2009-01-01 — Project Comme…**: Corporate Debtor began setting up a 700…
- **2010-03-29 — Term Loan Ag…**: Corporate Debtor entered into a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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