# In the matter of Radius & Deserve Land evelopers Private Limited CP (IB) No. 892-MB-V-2022

> NCLT judgment dated 3 May 2023. Citation: TCN-2023-NCLT-03476. IDBI Trusteeship Services Limited, the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 3 May 2023
- **Citation:** TCN-2023-NCLT-03476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/radius-deserve-land-evelopers-private-limited-cp-ib-no-892-mb-v-2022-76bd684f

## Summary

### Background

IDBI Trusteeship Services Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Radius & Deserve Land Developers Private Limited, the Corporate Debtor. The Financial Creditor claimed a total default of Rs. 55,00,00,000 along with default interest at 18% per annum as of May 19, 2022. The default arose from the Corporate Debtor's failure to comply with payment obligations under various Debenture Trust Deeds (DTDs) and subsequent Consent Terms.

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## Facts

IDBI Trusteeship Services Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Radius & Deserve Land Developers Private Limited, the Corporate Debtor. The application was filed by Ms. Jinal Shah, Assistant Manager of the Financial Creditor, who was duly authorized by a Board Resolution dated November 20, 2018. The Financial Creditor claimed a total default of Rs. 55,00,00,000, along with default interest at 18% per annum, as of May 19, 2022.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial…

**Ratio:** A default arising from a breach of Consent Terms, where the date of default falls outside…

**Reasoning:** The NCLT reasoned that the date of default for the present petition was April 30, 2022,…

**Interpretation:** The court interpreted **Section 10A** to apply only to defaults that occurred…

**Application:** In this case, the Corporate Debtor's failure to pay the April Instalment on…

## Parties

- **Judges:** Kuldip Kumar…; MEMBER (JUD…; +2 more
- **Advocates:** For the Petitioner…; For the Respondent…

## Timeline

- **November 20, 2018 — Board Reso…**: Ms. Jinal Shah, Assistant Manager of the Financial Creditor, was authorized by a Board…
- **October 20, 2018 — DTD 1 Ame…**: Debenture Trust Deed 1 (DTD 1) was amended, deferring interest payment and extending the…

## 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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