# In the matter of Rolta India Limited C.P. (IB) No. 4375-NCLT-MB-2018

> NCLT judgment dated 2019-10-22. Citation: TCN-2019-NCLT-00881. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Oct 2019
- **Citation:** TCN-2019-NCLT-00881
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rolta-india-limited-cp-ib-no-4375-nclt-mb-2018-581a247e

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) by Value Partners Greater China High Yield Income Fund and Pinpoint Multi-Strategy Fund, the Financial Creditors, against Rolta India Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditors claimed a total default of USD 14,60,50,963 equivalent to ₹1060,11,53,004 including interest as of November 13, 2018. Rolta India Limited is the parent company and guarantor to the principal borrowers, Rolta LLC and Rolta Americas LLC. The principal borrowers issued senior notes under indentures in 2013 and 2014, but failed to comply with interest payment obligations, leading the Financial Creditors to

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## Facts

Value Partners Greater China High Yield Income Fund and Pinpoint Multi-Strategy Fund (the 'Applicants') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against Rolta India Limited (the 'Corporate Debtor') to initiate Corporate Insolvency Resolution Process (CIRP). The Applicants claimed a total default of USD 14,60,50,963, equivalent to ₹1060,11,53,004, including interest as of November 13, 2018. Rolta India Limited is the parent company and guarantor to Rolta LLC and Rolta Americas LLC (the 'Principal Borrowers'). The Principal Borrowers issued senior notes under indentures dated May 16, 2013, and July 24, 2014. Rolta LLC issued Senior Notes for USD 200,000,000, bearing interest at 10.75%, in favor of DB Trustees

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## Issues and analysis

### Issue 1: Whether the Applicants, Value Partners Greater China High Yield Income Fund and Pinpoint …

**Ratio:** Section 6.07 of the Indentures grants the Holder the right to institute suit for

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**Reasoning:** The NCLT reasoned that the Authorization Letters issued by Cede & Co. specifically

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**Interpretation:** The interpretation of the Indentures and the authorization letters is crucial

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**Application:** The NCLT applied the ratio to the facts by noting that the Applicants had

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** Value Partners…
- **Respondents:** Rolta India…

## Timeline

- **2013-05-16 — 2013 Inde…**: Rolta LLC issued Senior…
- **2014-07-24 — 2014 Inde…**: Rolta Americas LLC issued…

## 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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