# In the matter of NEL Holdings Limited C.P. (IB) No. 197-BB-2020

> NCLT judgment dated 2020-12-14. Citation: TCN-2020-NCLT-00095. Investcorp Real Estate Yield Fund, the financial creditor, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 14 Dec 2020
- **Citation:** TCN-2020-NCLT-00095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nel-holdings-limited-cp-ib-no-197-bb-2020-7a546403

## Summary

### Background

Investcorp Real Estate Yield Fund, the financial creditor, filed a petition under Section 7 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against NEL Holdings Limited, the corporate debtor, due to a default of Rs. 173,12,24,515. The amount included a principal of Rs. 55,00,00,000 and interest of Rs. 118,12,24,515 as of May 31, 2020, arising from the allotment of 1250 secured, redeemable, non-convertible debentures. The Tribunal issued notice to the Corporate Debtor, who filed objections. However, the Financial Creditor subsequently sought to withdraw the petition.

## Facts

Investcorp Real Estate Yield Fund (formerly IDFC Real Estate Yield Fund), represented by IDBI Trusteeship Services Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against NEL Holdings Limited (formerly Nitesh Estates Limited). The basis for the petition was a financial debt of Rs. 173,12,24,515, comprising a principal amount of Rs. 55,00,00,000 and interest of Rs. 118,12,24,515 as of May 31, 2020, arising from the allotment of 1250 secured, redeemable, non-convertible debentures. The Corporate Debtor had filed its Statement of objections to the Petition. The Financial Creditor subsequently filed a memo seeking to withdraw the petition, stating that it no

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should permit the Financial Creditor to withdraw the petition …

**Ratio:** The Adjudicating Authority has the discretion to allow the withdrawal of a petition,

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**Reasoning:** The court considered that the case was at the admission stage and the Financial Creditor

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**Interpretation:** The interpretation is that the Adjudicating Authority has the power to allow

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**Application:** In this case, the Financial Creditor sought to withdraw the petition, and the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Investcorp Real…
- **Respondents:** NEL Holdings…

## Timeline

- **2014-06-18 — Debenture Trust Deed…**: Debenture Trust Deed…
- **2020-05-31 — Accrued Interest…**: Interest calculated as…

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