# In the matter of Viz Infra Consultants Pvt. Ltd. CP No. 1300-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-08-28. Citation: TCN-2018-NCLT-00884. IFCI Limited, a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 28 Aug 2018
- **Citation:** TCN-2018-NCLT-00884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/viz-infra-consultants-pvt-ltd-cp-no-1300-ibc-nclt-mb-mah-2017-ab52d5ef

## Summary

### Background

IFCI Limited, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Viz Infra Consultants Pvt. Ltd. (VICPL), the corporate debtor, for defaulting on a financial debt of Rs. 177 crores. The debt arose from a Debenture Subscription Agreement (DSA) dated 26.03.2013, where IFCI provided Non-Convertible Debentures (NCDs) to VICPL. The funds were intended for buying out IFCI's equity in Athena Energy Ventures Private Limited (AEVPL) and further investment in AEVPL for Athena Chhattisgarh Power Limited (ACPL). The NCDs carried a 10% coupon rate and were to be redeemed at a premium. The corporate debtor failed to meet its obligations, leading to the recall of the loan and the filing of the insolvency petition.

## Facts

IFCI Limited (Financial Creditor) filed a petition against Viz Infra Consultants Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, for a default of Rs. 177 crores. The debt originated from a Debenture Subscription Agreement (DSA) dated 26.03.2013, where IFCI provided Non-Convertible Debentures (NCDs) to VICPL. The purpose of the NCDs was to buy out IFCI's equity shareholding in Athena Energy Ventures Private Limited (AEVPL) amounting to Rs.124.99 crores and for further investment in AEVPL for meeting the additional requirements of Athena Chhattisgarh Power Limited (ACPL). The NCDs carried a coupon rate of 10% p.a. payable quarterly and were to be redeemed at a premium. As security, 8,33,26,667 shares of Athena Energy were

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## Issues and analysis

### Issue 1: Whether the petition filed by IFCI Limited is maintainable under Section 7 of the Insolvency and …

**Ratio:** The power to institute a petition under Section 7 of the I&B Code must be

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**Reasoning:** The NCLT considered the authorization letter dated 20.07.2017 and the resolution passed

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**Interpretation:** The court interpreted the legal precedents regarding the power of attorney

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**Application:** The court found that the facts and circumstances of the case were identical to

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** IFCI Li…
- **Respondents:** Viz Infra…
- **Advocates:** Shavez…; Almira La…; +1 more

## Timeline

- **2013-03-26 — Debenture Subscription…**: IFCI and Viz Infra Consultants Pvt. Ltd. entered into a Debenture Subscription Agreement…
- **2013-03-28 — Disbursement…**: IFCI disbursed Rs. 177 crores to Viz…

## 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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