# In the matter of Panyam Cements and Mineral Industries Ltd. CP (IB) No. 187-7-AMR-2019

> NCLT judgment dated 2020-05-14. Citation: TCN-2020-NCLT-01360. IDBI Trusteeship Services Limited, acting as a financial creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 14 May 2020
- **Citation:** TCN-2020-NCLT-01360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/panyam-cements-and-mineral-industries-ltd-cp-ib-no-187-7-amr-2019-723e69bd

## Summary

### Background

IDBI Trusteeship Services Limited, acting as a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Panyam Cements and Mineral Industries Limited, the corporate debtor. The corporate debtor had issued secured, rated, listed, redeemable, non-convertible debentures to raise private funds. The debentures were to be partially redeemed on different dates as per the Debenture Trust Deed. The corporate debtor defaulted in partially redeeming the debentures and failed to pay subsequent amounts due.

## Facts

Panyam Cements and Mineral Industries Limited (the Respondent) is a manufacturer of cement. To raise funds, the Respondent issued 978 secured, rated, listed, redeemable, non-convertible debentures with a face value of Rs. 10,00,000 each, totaling Rs. 97,80,00,000. EW India Special Assets Fund Private Limited and ECAP Equities Limited subscribed to these debentures in three tranches in 2016. IDBI Trusteeship Services Limited (the Petitioner) acted as the Debenture Trustee under a Debenture Trust Deed dated 09.02.2016. The Respondent defaulted on partially redeeming the debentures on 31.10.2017, paying only Rs. 1,66,38,784 on 12.12.2017 against a due amount of Rs. 2,16,38,685. The Respondent also failed to pay amounts due for subsequent months. As of 12.09.2019, Rs.

…

## Issues and analysis

### Issue 1: Whether the Petition is …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) has an overriding effect over any other law or

…

**Reasoning:** The Tribunal reasoned that the IBC's provisions override any conflicting agreements

…

**Interpretation:** The IBC's Section 238 establishes its supremacy over other laws and agreements.

…

**Application:** Despite the Debenture Trust Deed specifying Hyderabad courts as having

…

## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** IDBI Trusteeship…
- **Respondents:** Panyam Cements…

## Timeline

- **2015-12-29 — Board Reso…**: The Company by its Board Resolution desired to…
- **2016-02-09 — Debenture Tru…**: The present Petitioner as the Debenture Trustee entered into an agreement (Debenture…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/panyam-cements-and-mineral-industries-ltd-cp-ib-no-187-7-amr-2019-723e69bd