# In the matter of Three C Green Developers Private Limited Company Petition No. (IB)-380 (PB)-2020

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00052. The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/three-c-green-developers-private-limited-company-petition-no-ib-380-pb-2020-7f48038e

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by IIFL Private Equity Fund, the applicant/financial creditor, against Three C Green Developers Private Limited, the respondent/corporate debtor. The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to defaults in repayment of debentures. The applicant claims that the corporate debtor has defaulted in payment of installments totaling Rs. 95,80,70,867/- along with pending interest as per the debenture trust deed. The corporate debtor argues that the debentures were issued for a construction project delayed due to external factors, and they have already paid substantial amounts.

## Facts

IIFL Private Equity Fund, the applicant, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Three C Green Developers Private Limited, the corporate debtor. The applicant is a trust fund established by IIFL Holdings Limited. The corporate debtor issued debentures under Trust Deeds dated 27.12.2014, 29.12.2014, and 19.10.2015. The applicant purchased these debentures from Piramal Enterprises Limited in three tranches on 05.11.2015, 24.11.2015, and 29.12.2015. The corporate debtor agreed to repay the amount in 10 equal installments from the 15th month after disbursement but defaulted on 7 installments, totaling Rs. 95,80,70,867/-. As of 16.01.2020, a sum of Rs. 180,09,41,001/- was claimed as due. The applicant proposed Mr. Vikram Bajaj

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** An application under Section 7 of the Code is acceptable if the debt is proved to be due

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**Reasoning:** The court reasoned that the corporate debtor failed to demonstrate that there was no debt

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**Interpretation:** Section 7 allows a financial creditor to initiate CIRP against a corporate

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**Application:** The court applied the ratio to the facts by noting that the corporate debtor

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## Parties

- **Judges:** Sh. Dharminder…; SH. PRASANTA…
- **Appellants:** IIFL PRIVATE…
- **Respondents:** THREE C GREEN…

## Timeline

- **2012-07-23 — Deed of Tru…**: Date of the Deed of Trust…
- **2014-12-27 — Trust Dee…**: One of the dates of the Trust Deeds under which the debentures were issued by the…

## 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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