# In the matter of Lake District Really Private Limited

> NCLT judgment dated 2023-11-02. Citation: TCN-2023-NCLT-00874. Nippon Life India AIF Management Limited filed a company petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 2 Nov 2023
- **Citation:** TCN-2023-NCLT-00874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lake-district-really-private-limited-1295eb8b

## Summary

### Background

Nippon Life India AIF Management Limited filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Lake District Really Private Limited, alleging default in payment. The petition was based on the corporate debtor's failure to pay Rs. 37,51,64,939 as of 2019-05-14. The financial creditor claimed a default of Rs. 78,19,90,685 due under non-convertible debentures (NCDs) issued by the corporate debtor pursuant to a Debenture Trust Deed (DTD) dated 2016-10-06. The corporate debtor opposed the petition, arguing that a similar petition had already been admitted against the corporate guarantor, Bharucha & Motivala Infrastructure Private Limited, and that the debenture

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## Facts

Nippon Life India AIF Management Limited (the Petitioner) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Lake District Really Private Limited (the Corporate Debtor) due to a default in payment. The Corporate Debtor had issued non-convertible debentures (NCDs) pursuant to a Debenture Trust Deed (DTD) dated 2016-10-06. The total debt claimed was Rs. 78,19,90,685. The Corporate Debtor proposed to issue NCDs of nominal value of Rs. 20,000 each. The Petitioners held 100% of the NCDs issued by the Corporate Debtor. A sum of Rs. 29,25,00,000 was disbursed to the Corporate Debtor between 2016-10-14 and 2017-11-30. The Petitioners issued a notice dated 2018-04-06 to the Corporate Debtor noting various breaches under the DTD. The Corporate

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## Issues and analysis

### Issue 1: Whether the present Petition is maintainable under Section 7 of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court found that the financial creditor had established the existence of financial

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues by

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Nippon Life India…
- **Respondents:** Lake District…

## Timeline

- **2016-10-06 — Debenture Trust Deed…**: Date of the Debenture Trust Deed (DTD) pursuant to which the Corporate Debtor issued…
- **2016-10-14 — First Disbu…**: First disbursement of funds to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 69 — Punishment for transactions defrauding creditors](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-69)

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