# In the matter of Satra Properties (India) Limited MA No. 180-2020 and C.P. (IB) No. 1632-MB-2019

> NCLT judgment dated 2020-08-03. Citation: TCN-2020-NCLT-00914. Vistra ITCL (India) Limited, formerly known as IL & FS Trust Company, filed a Company Petition…

- **Court:** NCLT
- **Order date:** 3 Aug 2020
- **Citation:** TCN-2020-NCLT-00914
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/satra-properties-india-limited-ma-no-180-2020-and-cp-ib-no-1632-mb-2019-0feb2ae5

## Summary

### Background

Vistra ITCL (India) Limited, formerly known as IL & FS Trust Company, filed a Company Petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Satra Properties (India) Limited, alleging default in payment of ₹65,24,33,104/-, comprising principal, interest, and penal interest, by invoking Section 7 of the Insolvency & Bankruptcy Code (IBC), 2016. The Corporate Debtor had issued secured redeemable non-convertible debentures to the Petitioner. The Corporate Debtor was engaged in real estate, constructions, and development of residential and commercial properties and was desirous of raising funds for its construction project at Borivali, Mumbai, and 'Satra Plazaa' at Jodhpur, Rajasthan. The Petitioners agreed to subscribe to 5600

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## Facts

1. Vistra ITCL (India) Limited filed a petition to initiate CIRP against Satra Properties (India) Limited under Section 7 of the IBC, 2016.
2. The claim was based on a default in payment of ₹65,24,33,104/- (principal, interest, and penal interest) related to secured redeemable non-convertible debentures.
3. The Corporate Debtor issued 5600 debentures with a face value of Rs.1,00,000/- each, totaling Rs.56,00,00,000/-.
4. The debentures were secured by a first equitable mortgage charge on a commercial plot in Jodhpur, a personal guarantee from Mr. Praful Satra, and deposit of title deeds.
5. A Debenture Subscription Agreement was executed on 1st March 2014.
6. The Corporate Debtor was to notify the Debenture Holders of any winding-up applications and accumulate receivables

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## Issues and analysis

### Issue 1: Whether the Debenture Subscription Agreement and Debenture Trust deed executed and registered in …

**Ratio:** The ratio is based on the interpretation of the Maharashtra Stamp Act, 1958, particularly

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**Reasoning:** The Tribunal reasoned that the documents, although executed in Delhi, were being enforced

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**Interpretation:** The interpretation involves understanding the scope and applicability of the

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; V. Nallasen…; +1 more
- **Appellants:** Vistra ITCL…
- **Respondents:** Satra Properties…

## Timeline

- **2014-03-01 — Debenture Subscription…**: The Corporate Debtor executed the Secured Redeemable Non-Convertible Debenture…
- **2014-12-02 — Escrow Agr…**: An Escrow Agreement was executed between the Corporate Debtor, the Debenture Holders,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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