# In the matter of Marvel Omega Builders Private Limited

> NCLT judgment dated 2024-09-06. Citation: TCN-2024-NCLT-00647. Catalyst Trusteeship Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Sept 2024
- **Citation:** TCN-2024-NCLT-00647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/marvel-omega-builders-private-limited-52c4f8a3

## Summary

### Background

Catalyst Trusteeship Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Marvel Omega Builders Private Limited, citing a default of Rs. 347,72,39,333/-. The petition arises from two facility agreements entered into by Altico Capital India Private Limited (later assigned to Catalyst Trusteeship Limited) with Marvel Landmarks Private Limited and Marvel Realtors and Developers Limited, where Marvel Omega Builders Private Limited acted as a corporate guarantor. The corporate debtor challenged the maintainability of the petition, arguing it was barred under Section 10A of the I&B Code and that a settlement had been reached with the original lender.

## Facts

Altico Capital India Private Limited (Original Lender) entered into two facility agreements with Marvel Landmarks Private Limited (MLPL) and Marvel Realtors and Developers Limited (MRDL) on 01.12.2017, disbursing a total of Rs. 375 crores. Marvel Omega Builders Private Limited (Corporate Debtor) provided a corporate guarantee for these facilities. The borrowers defaulted on repayments starting 31.12.2020. Altico Capital assigned its rights to Catalyst Trusteeship Limited on 04.03.2021. Catalyst Trusteeship Limited issued notices of default to MLPL, MRDL, and the Corporate Debtor on 23.07.2021, 16.02.2022, and 13.04.2022. Vistra ITCL, as Security Trustee, also issued notices on 03.06.2022. The Corporate Debtor claimed an oral settlement agreement with the Original

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## Issues and analysis

### Issue 1: Whether the petition is barred under Section 10A of the Insolvency and Bankruptcy Code, considering …

**Ratio:** The liability of a corporate guarantor arises only when the guarantee is invoked. Section

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**Reasoning:** The court relied on the judgment in IDBI Trusteeship Services Limited vs. Direct Media

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**Interpretation:** Section 10A is interpreted to bar petitions only when the default itself, in

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**Application:** The court applied the ratio to the facts, noting that the invocation of the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Catalyst Trusteesh…
- **Respondents:** Marvel Omega…
- **Advocates:** Shyam Ka…; Yash Dh…; +2 more

## Timeline

- **2017-12-01 — Facility Agr…**: Altico Capital entered into two facility agreements with Marvel Landmarks Private Limited…
- **2019-01-01 — Altico Capital's…**: Altico Capital faced…

## 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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