# In the matter of Gutsiness Hospitality Private Limited

> NCLT judgment dated 2025-01-09. Citation: TCN-2025-NCLT-00642. Catalyst Trusteeship Limited, formerly known as Milestone Trusteeship Services Private Limited,…

- **Court:** NCLT
- **Order date:** 9 Jan 2025
- **Citation:** TCN-2025-NCLT-00642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gutsiness-hospitality-private-limited-b6ffa66a

## Summary

### Background

Catalyst Trusteeship Limited, formerly known as Milestone Trusteeship Services Private Limited, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gutsiness Hospitality Private Limited, formerly known as Archies Developers Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, acting as a Debenture Trustee for Capri Global Capital Limited, claimed that the Corporate Debtor had defaulted on a corporate guarantee issued for the benefit of debenture holders after the Issuer Companies failed to repay the NCD amount. The Financial Creditor had issued notices under Section 13(2) of the SARFAESI Act, 2002, and obtained an order from the Additional Chief Metropolitan Magistrate to

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## Facts

Catalyst Trusteeship Limited, acting as the Debenture Trustee for Capri Global Capital Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Gutsiness Hospitality Private Limited, the Corporate Debtor. The Issuer Companies, engaged in the business of builders and contractors, issued secured, redeemable, non-convertible, unlisted Zero-Coupon Cumulative Debentures (NCDs). Capri Global Capital Limited subscribed to these NCDs. The Issuer Companies were required to appoint a Debenture Trustee, and they entered into Debenture Trustee Deeds with Milestone Trusteeship Services Private Limited, later amalgamated into Catalyst Trusteeship Limited. The Corporate Debtor issued a corporate guarantee to the Debenture Trustee for the benefit

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in paying the financial debts of more than Rs. 1 Crore as …

**Ratio:** Section 4 of the IBC specifies the minimum threshold for initiating insolvency

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**Reasoning:** The NCLT observed that the Corporate Debtor had defaulted in paying financial debts

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**Interpretation:** Section 4 sets the financial threshold for triggering the IBC. The court must

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**Application:** The NCLT found that the Corporate Debtor's outstanding debt was more than Rs. 1

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## Parties

- **Judges:** SH. PRABHAT…; Sh. Justice V.G…
- **Appellants:** Catalyst Trusteesh…
- **Respondents:** Gutsiness…

## Timeline

- **1997-08-22 — Incorporation of Milestone Trusteeship Services…**: Milestone Trusteeship Services Private Limited was incorporated under the Companies Act,…
- **2010-02-25 — Incorporation of Archies Developers Private…**: Archies Developers Private Limited was…

## 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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