# In the matter of Radius Estate Projects Private Limited CP No. 380-IBC-NCLT-MB-MAH-2021

> NCLT judgment dated 2021-09-06. Citation: TCN-2021-NCLT-01185. SBICAP Trustee Company Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 6 Sept 2021
- **Citation:** TCN-2021-NCLT-01185
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/radius-estate-projects-private-limited-cp-no-380-ibc-nclt-mb-mah-2021-5c4489fa

## Summary

### Background

SBICAP Trustee Company Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Radius Estate Projects Private Limited, claiming a default of Rs. 23,85,42,463/- including interest. The Corporate Debtor needed funds and entered into a Debenture Trust Deed with the Petitioner on 07.10.2016, issuing debentures worth Rs. 40,00,00,000/-. The debentures were secured by unsold flats and other assets. The Corporate Debtor defaulted on redemption amounts and coupon rates, leading to the application for initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

SBICAP Trustee Company Limited, acting as a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Radius Estate Projects Private Limited (formerly known as Vishwaroop Realtors Private Limited), the Corporate Debtor. The Corporate Debtor issued 4,000 secured, unlisted, unrated, redeemable, non-convertible debentures for a nominal amount of Rs. 1,00,000/- each, aggregating up to Rs. 40,00,00,000/-. The Debentures were to be redeemed within a maximum period of 36 months. The Corporate Debtor defaulted on payments of redemption amounts and coupon rates due on 14.07.2019 and 14.10.2019. The Petitioner issued reminders, and the Corporate Debtor acknowledged the outstanding payments but failed to remit them. The Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in the repayment of debt amount of Rs. 23,85,42,463/- to the …

**Ratio:** The Corporate Debtor is liable to pay the Petitioner and defaulted in making the payment

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**Reasoning:** The Corporate Debtor issued letters to the Petitioner on 11.10.2019, 11.11.2019,

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**Interpretation:** The Corporate Debtor's own acknowledgements of the debt and default are strong

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**Application:** The Corporate Debtor's letters acknowledging the debt and default clearly

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## Parties

- **Judges:** SUCHITRAKAN…; Chandra Bha…
- **Appellants:** SBICAP Trustee…
- **Respondents:** Radius Estate…

## Timeline

- **2016-10-07 — Debenture Tru…**: The Petitioner, the Corporate Debtor and the Promoter of the Corporate Debtor, Mr. Sanjay…
- **2016-10-07 — Debenture I…**: The Corporate Debtor issued 4,000 secured, unlisted, unrated, redeemable, non-convertible…

## 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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