# In the matter of Lokhandwala Kataria Constructions Pvt. Ltd. CP No. 61-NCLT-MAH-2017

> NCLT judgment dated 2017-06-15. Citation: TCN-2017-NCLT-00806. M/s. Nisus Finance & Investment Managers LLP, acting as a facility agent, filed a Company…

- **Court:** NCLT
- **Order date:** 15 Jun 2017
- **Citation:** TCN-2017-NCLT-00806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lokhandwala-kataria-constructions-pvt-ltd-cp-no-61-nclt-mah-2017-99ef9b65

## Summary

### Background

M/s. Nisus Finance & Investment Managers LLP, acting as a facility agent, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Lokhandwala Kataria Constructions Pvt. Ltd., the Corporate Debtor. The petition arises from a Debenture Trust Deed (DTD) dated 5.10.2015, where the Corporate Debtor acted as a guarantor for Vista Homes Pvt. Ltd. Vista failed to repay debenture holders, leading the facility agent to initiate insolvency proceedings against the Corporate Debtor. The Corporate Debtor raised objections regarding the locus standi of the Facility Agent and the quantification of the financial debt.

## Facts

Vista Homes Pvt. Ltd. issued debentures worth ₹27,86,00,000 through a Debenture Trust Deed (DTD) dated 5.10.2015. M/s. Lokhandwala Kataria Constructions Pvt. Ltd. acted as a guarantor for Vista's repayment obligations. M/s. Nisus Finance & Investment Managers LLP served as the facility agent for the debenture holders. Vista defaulted on its repayment obligations, triggering a default clause in the DTD. The facility agent, acting on behalf of the debenture holders, issued a notice of default on 4.10.2016. Vista failed to redeem the debentures, leading the facility agent to file a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor. The Corporate Debtor raised objections regarding the facility agent's locus

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## Issues and analysis

### Issue 1: Whether the applicant, in the capacity of …

**Ratio:** A facility agent, authorized by a Debenture Trust Deed to act on behalf of debenture

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**Reasoning:** The court reasoned that the Debenture Trust Deed (DTD) granted the Facility Agent the

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**Interpretation:** The court interpreted the Debenture Trust Deed as assigning the rights of the

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**Application:** The court applied the ratio to the facts of the case, finding that the Facility

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** M/s. Nisus…
- **Respondents:** M/s. Lokhandwala…

## Timeline

- **2015-05-10 — Debenture Trust Deed…**: Debenture Trust Deed (DTD) executed between Vista, Axis Trustee Services, Lokhandwala…
- **2015-10-05 — Debenture Trust Deed…**: The Debenture Trust Deed is…

## 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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