# In the matter of Excel Dwellings India Private Limited

> NCLT judgment dated 2024-03-13. Citation: TCN-2024-NCLT-02055. The case involves a petition filed by Vistra ITCL (India) Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 13 Mar 2024
- **Citation:** TCN-2024-NCLT-02055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/excel-dwellings-india-private-limited-fc284a2a

## Summary

### Background

The case involves a petition filed by Vistra ITCL (India) Limited, the Financial Creditor, against Excel Dwellings India Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to a total outstanding default amount of Rs. 87,97,46,671 as of May 31, 2021. The default was initially triggered by vandalism and damage to mortgaged property, but the respondent argued that the debenture redemption period was extended, making the petition premature.

## Facts

Vistra ITCL (India) Limited, the Financial Creditor, filed a petition against Excel Dwellings India Private Limited, the Corporate Debtor, under Section 7 of the IBC, seeking to initiate CIRP. The initial default was claimed to be Rs. 87,97,46,671 as of May 31, 2021, with the date of default mentioned as April 16, 2021. This default was initially triggered by vandalism and damage to the mortgaged property by a contractor. The Corporate Debtor and the Financial Creditor had executed a Debenture Trust Deed dated July 5, 2016, which was later amended on November 24, 2016, and October 14, 2020. The Debenture Trust Deed was further amended on June 17, 2022, extending the debenture redemption period to March 31, 2024. The Corporate Debtor argued that they had already paid

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the IBC is maintainable …

**Ratio:** Section 7 of the IBC requires the existence of a 'debt' and a 'default' for initiating

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**Reasoning:** The Tribunal reasoned that since the maturity date of the debenture was extended to March

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**Interpretation:** The interpretation of Section 7 and Section 3(12) of the IBC hinges on the

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**Application:** In this case, the extension of the debenture redemption period to March 31,

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## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** Vistra ITCL…
- **Respondents:** Excel Dwellings…

## Timeline

- **2016-07-05 — Debenture Tru…**: Execution of Debenture Trust Deed between the…
- **2016-11-24 — First Amendment to…**: Amendment to 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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