# In the matter of DSS Infrastructure Private Limited

> NCLT judgment dated 2023-12-11. Citation: TCN-2023-NCLT-00314. IDBI Trusteeship Service Limited filed an application against M/s DSS Infrastructures Private…

- **Court:** NCLT
- **Order date:** 11 Dec 2023
- **Citation:** TCN-2023-NCLT-00314
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dss-infrastructure-private-limited-8994c932

## Summary

### Background

IDBI Trusteeship Service Limited filed an application against M/s DSS Infrastructures Private Limited, the Corporate Guarantor for the Principal Borrower, Shree Vardhman Buildprop Pvt. Ltd. The Corporate Debtor argued that since a separate petition under Section 7 of IBC, 2016, is already pending against the Principal Borrower, the present application should be heard by the same bench/court. The applicant had issued default notices to Shree Vardhman Buildprop Pvt. Ltd. and invoked the Bank Guarantee given by the CD/PG.

## Facts

IDBI Trusteeship Service Limited (Applicant) filed an application against M/s DSS Infrastructures Private Limited (Corporate Debtor), who is the Corporate Guarantor for Shree Vardhman Buildprop Pvt. Ltd. (Principal Borrower). The Applicant had also filed a separate application under Section 7 of IBC, 2016, against the Principal Borrower. The Corporate Debtor argued that the present application should be heard by the same bench/court as the application against the Principal Borrower. The Applicant issued default notices to Shree Vardhman Buildprop Pvt. Ltd. on 05.08.2019 and 18.11.2020. The Bank Guarantee given by the Corporate Debtor was invoked on 06.07.2023. Applications for initiating CIRP against both the Corporate Guarantor and the Principal Borrower are pending

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## Issues and analysis

### Issue 1: Whether the present application against the Corporate Guarantor should be heard by the same …

**Ratio:** Section 60(3) of the IBC, 2016, stipulates that if an insolvency resolution process or

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**Reasoning:** The court reasoned that since applications for initiating CIRP against both the Corporate

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**Interpretation:** Section 60(3) of the IBC, 2016, is interpreted to ensure that all related

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**Application:** The court applied the ratio of Section 60(3) to the facts of the case, where

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** IDBI Trusteeship…
- **Respondents:** M/s DSS Infrastruc…

## Timeline

- **2016-06-14 — Debenture Trust Deed…**: Date of the Debenture Trust…
- **2016-07-22 — Corporate Guara…**: Date on which the Corporate Debtor furnished Corporate Guarantee in favor of 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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