# In the matter of Sintex Industries Limited IA-38 & 147(AHM)2021 in C.P. No. (IB) 848-7-NCLT-AHM-2019

> NCLT judgment dated 2021-04-06. Citation: TCN-2021-NCLT-02456. Invesco Asset Management (India) Private Limited filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 6 Apr 2021
- **Citation:** TCN-2021-NCLT-02456
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sintex-industries-limited-ia-38-147ahm2021-in-cp-no-ib-848-7-nclt-ahm-2019-0d6db9c2

## Summary

### Background

Invesco Asset Management (India) Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. The applicant/financial creditor is an investment manager, incorporated on 20.05.2005. They granted Rs. 15,00,00,000/- to the respondent/corporate debtor - M/s. Sintex Industries Limited, being 150 secured non-convertible debentures of face value of Rs. 10,00,000/- each bearing ISIN INE429C07507 and bearing coupon of 10.70% p.a. The corporate debtor defaulted on the due date mentioned in the total principal amount of Rs. 15,00,00,000/- along with interest @ 10.70% p.a. amounting to Rs. 15,40,01,506.85 as on 30th September, 2019 along with 2% p.a. default interest till

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## Facts

Invesco Asset Management (India) Private Limited, acting as the Investment Manager for Invesco India Credit Risk Fund, granted Rs. 15,00,00,000/- to Sintex Industries Limited through 150 secured non-convertible debentures. The debentures had a face value of Rs. 10,00,000/- each, bearing ISIN INE429C07507 and a coupon rate of 10.70% p.a. The date of allotment under the Information Memorandum and DTD was 30th September, 2014, but the financial creditor invested in the debentures from the secondary market on 04th December, 2014. Sintex Industries Limited defaulted on the principal amount and interest, with the total outstanding amounting to Rs. 15,40,01,506.85 as of 30th September, 2019, along with a 2% p.a. default interest. The corporate debtor made partial payments of

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## Issues and analysis

### Issue 1: Whether the instant insolvency application is maintainable under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the objections raised by the respondent regarding

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**Interpretation:** The court interpreted the board resolution as providing sufficient

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**Application:** The court applied the ratio to the facts and found that the applicant had the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Invesco Asset…
- **Respondents:** Sintex Industries…

## Timeline

- **2005-05-20 — Incorporation o…**: Invesco Asset Management (India)…
- **2006-04-27 — Investment Management…**: Investment Management Agreement…

## 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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