# In the matter of DDK Infratech Private Limited

> NCLT judgment dated 2023-09-14. Citation: TCN-2023-NCLT-01630. The case involves an application filed by five financial creditors under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 Sept 2023
- **Citation:** TCN-2023-NCLT-01630
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ddk-infratech-private-limited-fbaa244a

## Summary

### Background

The case involves an application filed by five financial creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against DDK Infratech Private Limited, the Corporate Debtor. The financial creditors had invested in Non-Convertible Debentures (NCDs) issued by the Corporate Debtor. The Corporate Debtor defaulted on interest and principal payments. The Corporate Debtor filed an Interlocutory Application alleging perjury by the Financial Creditors and seeking dismissal of the company petition.

## Facts

Five financial creditors jointly filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against DDK Infratech Private Limited. The financial creditors had invested a total of Rs. 1,31,00,000/- by subscribing to unlisted, unrated, secured, redeemable Non-Convertible Debentures (NCDs) issued by the Corporate Debtor. The Corporate Debtor defaulted on quarterly interest payments after the initial year 2016-17 and also defaulted on the repayment of the first installment of the principal amount of NCDs during the years 2018-19 and 2019-20. The total amount claimed by the financial creditors as of 31.10.2022 was Rs. 2,30,02,467/- inclusive of interest. The Corporate Debtor admitted to the

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## Issues and analysis

### Issue 1: Whether the present petition is barred by the principle of res sub judice due to a prior petition …

**Ratio:** The principle of res sub judice under Section 10 of the Civil Procedure Code (CPC) does

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**Reasoning:** The NCLT held that the provisions of the Civil Procedure Code, 1908 are not made fully

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**Interpretation:** The NCLT interpreted that the principle of res sub judice enshrined in Section

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**Application:** The NCLT found that even though the Debenture Trustee had filed a separate

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## Parties

- **Judges:** SANJIV…; LAKSHMI G…
- **Appellants:** Girija Prasanna…
- **Respondents:** DDK Infratech…

## Timeline

- **2016-10-03 — Subscription…**: Sri Girija Prasanna Cotton Mills Limited…
- **2017-01-07 — Subscription…**: Nanda Paike Kumari subscribed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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