# In the matter of ATS INFRABUILD PRIVATE LIMITED

> NCLT judgment dated 2025-03-04. Citation: TCN-2025-NCLT-00410. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Mar 2025
- **Citation:** TCN-2025-NCLT-00410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ats-infrabuild-private-limited-811f123b

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by IDBI Trusteeship Services Limited, acting as a Debenture Trustee for Wealth Advisors Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against ATS Infrabuild Private Limited, the Corporate Debtor. The application is based on alleged defaults in payment of principal and interest on debentures issued by the Corporate Debtor. The Corporate Debtor raised objections, contending that no default had occurred and that the application was not maintainable. An intervention application was also filed by Mr. Rajinder Singh, claiming ownership of land mortgaged by the Corporate Debtor to the Financial Creditor.

## Facts

IDBI Trusteeship Services Private Limited, acting as a Debenture Trustee for Wealth Advisors Private Limited, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against ATS Infrabuild Private Limited. The application was based on the Corporate Debtor's failure to repay the principal amount of Rs. 5 crores and interest due under a Debenture Trust Deed (DTD) dated 12.09.2022. The DTD was issued for the purpose of construction and development of a real estate project named ‘Casa Espana' in Mohali. The Applicant alleged multiple Events of Default (EOD), including failure to infuse capital, expiry of RERA and PAPRA licenses, and default in interest payments. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Applicant has established the existence of a financial debt and a default by the …

**Ratio:** Section 5(8) of the IBC defines 'financial debt' and Section 7 provides for initiation of

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**Reasoning:** The Adjudicating Authority found that the credit facility extended to the Corporate

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**Interpretation:** The existence of a financial debt and a default in its repayment are essential

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**Application:** In this case, the Adjudicating Authority found that the Applicant had furnished

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** M/s IDBI Trusteesh…
- **Respondents:** ATS Infrabuild…; M/s ATS Infrabuild…
- **Advocates:** Anushree…; Ajit K…

## Timeline

- **2007-10-04 — Incorporation of…**: ATS Infrabuild Private Limited was…
- **2022-09-12 — Debenture Tru…**: Debenture Trust Deed (DTD) was…

## 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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