# In the matter of Radius & Deserve Builders LLP CP (IB) 239-MB-C-I-2022

> NCLT judgment dated 23 Sept 2022. Citation: TCN-2022-NCLT-00946. The Financial Creditor, IDBI Trusteeship Services Limited, filed a petition under Section 7…

- **Court:** NCLT
- **Order date:** 23 Sept 2022
- **Citation:** TCN-2022-NCLT-00946
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/radius-deserve-builders-llp-cp-ib-239-mb-c-i-2022-2959c095

## Summary

### Background

The Financial Creditor, IDBI Trusteeship Services Limited, filed a petition under Section 7 of the IBC to initiate CIRP against Radius and Deserve Builders LLP (Corporate Debtor) due to alleged defaults under a Debenture Trust Deed (DTD) and an Options Agreement. The Corporate Debtor contested the petition, arguing that the debt was not maintainable under the IBC, there was no privity of contract, and the petition was barred by Section 10A of the IBC.

## Facts

IDBI Trusteeship Services Limited (Financial Creditor) filed a Company Petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Radius and Deserve Builders LLP (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The petition alleged a default in repayment of Rs. 302,00,00,000/- under a Debenture Trust Deed (DTD) dated September 15, 2015, read with an Options Agreement dated September 14, 2015. The total amount claimed in default, including redemption premium and default interest, was Rs. 1204,17,75,567/-.

## Issues and analysis

### Issue 1: Whether the petition for initiating CIRP is maintainable given the Consent Terms dated January 29,…

**Ratio:** A default of clauses in Consent Terms, which settled prior disputes related to financing…

**Reasoning:** The Corporate Debtor argued that the dispute was settled under the Consent Terms, and a…

**Interpretation:** The court interpreted the Consent Terms as a comprehensive settlement that…

**Application:** Since the Consent Terms settled the disputes and provided specific remedies,…

## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Advocates:** For the Financial…; Counsel. For the…; +2 more

## Timeline

- **September 14, 2015 — Options Agr…**: Corporate Debtor and RDLDPL entered into an Options Agreement for the purchase of FSI on…
- **September 15, 2015 — Debenture Trust Deed…**: Corporate Debtor incurred debt to the Financial Creditor under the DTD, read with the…

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