# In the matter of Dutt Capital Advisors Pvt. Ltd.

> NCLT judgment dated 2023-07-18. Citation: TCN-2023-NCLT-02463. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Jul 2023
- **Citation:** TCN-2023-NCLT-02463
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dutt-capital-advisors-pvt-ltd-ab197b0a

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Ashu Dutt, an Operational Creditor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Dutt Capital Advisors Private Limited, the Corporate Debtor. The petition was filed on 31.10.2019, claiming a default amount of Rs. 39,72,39,391/-, including principal and interest. The Operational Creditor and Corporate Debtor had entered into Secured Debt Agreements dated 30.09.2014 for payment of Rs. 13.5 Crores, which was due on 01.12.2015, with an 18% interest on delay. The Corporate Debtor failed to pay the amount, leading to the petition.

## Facts

Ashu Dutt, an Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Dutt Capital Advisors Private Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition was filed on 31.10.2019, claiming a default of Rs. 39,72,39,391/-, comprising principal (Rs. 36,44,39,809/-) and interest (@18% p.a. up to 30.07.2019 Rs. 3,27,99,582). The Operational Creditor and Corporate Debtor had entered into Secured Debt Agreements dated 30.09.2014 for payment of Rs. 13.5 Crores, originally due on 01.12.2015, with an 18% interest on delay. The agreement was executed in lieu of the Corporate Debtor's inability to pay compensation to the Applicant either in the form of

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC is maintainable when the Operational Debt …

**Ratio:** An application under Section 9 of the IBC can only be filed by an Operational Creditor to

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**Reasoning:** The court reasoned that the agreement dated 30.09.2014 discharged the Corporate Debtor

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**Interpretation:** This legal issue concerns the interpretation of Section 9 of the IBC and the

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**Application:** In this case, the Operational Debt was converted into a secured loan through an

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Ashu…
- **Respondents:** Dutt Capital…; Dutt Capital…

## Timeline

- **2008-10-07 — Agreement…**: Agreement between the Applicant and Corporate Debtor regarding compensation in the form…
- **2014-09-30 — Secured Debt A…**: Execution of Secured Debt Agreements between the Applicant and Corporate Debtor for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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