# In the matter of Basant Marketing Limited C.P (IB) No. 1136-KB-2020

> NCLT judgment dated 2023-04-24. Citation: TCN-2023-NCLT-03663. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 24 Apr 2023
- **Citation:** TCN-2023-NCLT-03663
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/basant-marketing-limited-cp-ib-no-1136-kb-2020-7352a403

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Vikas Prakash Gupta, the Resolution Professional of Man Tubinox Limited, against Basant Marketing Limited, the Corporate Debtor. The petition seeks initiation of the Corporate Insolvency Resolution Process (CIRP) against Basant Marketing Limited based on trade receivables amounting to Rs. 27,83,20,000 arising from the issuance of bonds by the Corporate Debtor to Man Tubinox Limited. The petition was filed on August 14, 2020.

## Facts

Vikas Prakash Gupta, the Resolution Professional of Man Tubinox Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Basant Marketing Limited, the Corporate Debtor. The claim is based on trade receivables of Rs. 27,83,20,000 arising from bonds issued by Basant Marketing Limited to Man Tubinox Limited. The petition was filed on August 14, 2020. The Corporate Debtor's authorized share capital is Rs. 20,00,00,000, with a paid-up capital of Rs. 13,64,68,230. The Financial Creditor is undergoing CIRP as per an order dated June 12, 2019, by the Mumbai Bench of the NCLT. The Resolution Professional observed receivables from the Corporate Debtor during the CIRP. The

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## Issues and analysis

### Issue 1: Whether unsecured Optionally Convertible Zero-Coupon Premium Bond (OZCPB) comes under the umbrella …

**Ratio:** The term 'financial debt' includes any amount raised pursuant to any note purchase

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**Reasoning:** The court refers to Section 5(8) of the Code, which defines 'financial debt' and includes

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8) is broad and

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**Application:** In this case, the OZCPB issued by the Corporate Debtor falls within the

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## Parties

- **Judges:** Smt Bidisha…; Balraj…
- **Appellants:** Vikas Prakash…
- **Respondents:** Basant Marketing…

## Timeline

- **2020-08-14 — Petition…**: The present Petition was filed on 14 August,…
- **2020-02-21 — Date of D…**: The date of default is stated to…

## 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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