# In the matter of Seya Industries Limited C.P.(IB)606-MB-2020

> NCLT judgment dated 2021-08-03. Citation: TCN-2021-NCLT-01508. This case involves a Company Petition filed by Beacon Trusteeship Limited, S C Manager Private…

- **Court:** NCLT
- **Order date:** 3 Aug 2021
- **Citation:** TCN-2021-NCLT-01508
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/seya-industries-limited-cpib606-mb-2020-13cd46af

## Summary

### Background

This case involves a Company Petition filed by Beacon Trusteeship Limited, S C Manager Private Limited, and SC Credit Fund against Seya Industries Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioners allege that Seya Industries Limited defaulted on a payment of Rs. 77,94,92,513/-. The Corporate Debtor had issued secured, unrated, redeemable, non-convertible debentures to Petitioner No. 3, with Beacon Trusteeship Limited acting as the Debenture Trustee. The Corporate Debtor failed to pay the first coupon installment, leading to the petitioners issuing notices for the entire redemption amount. Simultaneously, the Corporate Debtor initiated arbitration against the Petitioners, alleging breach of the Debenture Trust Deed. The

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## Facts

Beacon Trusteeship Limited, S C Manager Private Limited, and SC Credit Fund filed a Company Petition against Seya Industries Limited under Section 7 of the IBC, 2016, claiming a default of Rs. 77,94,92,513/-. Seya Industries Limited had issued secured, unrated, redeemable, non-convertible debentures, with Rs. 72 crores disbursed to Petitioner No. 3 on 2019-03-11. Beacon Trusteeship Limited acted as the Debenture Trustee. The first coupon payment was due on 2019-09-11, but Seya Industries Limited failed to pay, even after a grace period until 2019-10-15. Petitioners issued a recall notice on 2019-10-16. Seya Industries Limited initiated arbitration against the Petitioners, alleging breach of the Debenture Trust Deed. The Petitioners filed a counterclaim and secured an

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## Issues and analysis

### Issue 1: Whether a financial debt exists in terms …

**Ratio:** Section 5(8) of the IBC defines financial debt as a debt disbursed against the

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**Reasoning:** The NCLT determined that the execution of the DTD dated 2019-03-08 and the Supplementary

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**Interpretation:** The court interpreted Section 5(8) of the IBC to mean that any debt disbursed

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**Application:** The court applied this interpretation to the facts, noting that the Rs. 72

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## Parties

- **Judges:** SUCHITRAKAN…; Chandra Bha…
- **Appellants:** Beacon Trusteeship…
- **Respondents:** Seya Industries…
- **Advocates:** Chetan Ka…; Shadab…; +4 more

## Timeline

- **2019-03-08 — Debenture Trust Deed…**: Execution of the Debenture…
- **2019-03-11 — Disbursement of Rs. 72…**: Petitioner No. 3 disbursed Rs. 72…

## 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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