# In the matter of Nobel Buildtech Private Limited

> NCLT judgment dated 2024-11-05. Citation: TCN-2024-NCLT-00304. Orbis Trusteeship Services Private Limited, acting as a Debenture Trustee, filed a petition…

- **Court:** NCLT
- **Order date:** 5 Nov 2024
- **Citation:** TCN-2024-NCLT-00304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nobel-buildtech-private-limited-757cd32f

## Summary

### Background

Orbis Trusteeship Services Private Limited, acting as a Debenture Trustee, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate corporate insolvency resolution process (CIRP) against Nobal Buildtech Private Limited, the Corporate Debtor. The application stems from a default on financial facilities extended to Kindle Infraheights Private Limited (Principal Borrower) by Debenture Holders, for which Nobal Buildtech provided a corporate guarantee. The financial facility involved the issuance of Non-Convertible Debentures (NCDs). The Applicant contends that the Principal Borrower failed to repay the outstanding debt liabilities, leading to the invocation of the corporate guarantee against Nobal Buildtech.

## Facts

1. Orbis Trusteeship Services Private Limited, acting as a Debenture Trustee for Asia Pragati Strategic Investment Fund (Debenture Holder), filed a petition to initiate CIRP against Nobal Buildtech Private Limited (Corporate Debtor) under Section 7 of IBC, 2016.
2. The Debenture Holder extended financial facilities to Kindle Infraheights Private Limited (Principal Borrower) for real estate development.
3. The Principal Borrower availed a financial facility of Rs. 130 crores through the issuance of Non-Convertible Debentures (NCD 1), documented in a Debenture Trust Deed dated 2019-06-28, later amended on 2020-09-30.
4. An additional Rs. 6 crore was provided as another tranche (NCD 2), recorded in a Debenture Trust Deed dated 2021-02-25.
5. Nobal Buildtech provided a

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## Issues and analysis

### Issue 1: Whether Orbis Trusteeship Services Private Limited, as a Debenture Trustee, is entitled to initiate …

**Ratio:** A Debenture Trustee has an independent right and obligation to take steps in respect of

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**Reasoning:** The Tribunal considered the provisions of the Companies Act, 2013, and the notification

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**Interpretation:** The legal framework, including the Companies Act, 2013, and the IBC, 2016,

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**Application:** The authorization letter issued by the Debenture Holder in favor of the

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Orbis Trusteeship…
- **Respondents:** Nobal Buildtech…
- **Advocates:** Sumesh D…; Mallika…; +8 more

## Timeline

- **2019-06-27 — Debenture Trust Deed…**: Debenture Trust Deed for the first…
- **2020-09-30 — Amendment of Debenture…**: The Debenture Trust Deed for the first tranche…

## 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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