# In the matter of Nobility Estates Pvt. Ltd.

> NCLT judgment dated 2023-11-24. Citation: TCN-2023-NCLT-00581. ASK Trusteeship Services Private Limited, acting as the Applicant/Financial Creditor, filed an…

- **Court:** NCLT
- **Order date:** 24 Nov 2023
- **Citation:** TCN-2023-NCLT-00581
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nobility-estates-pvt-ltd-daf7303e

## Summary

### Background

ASK Trusteeship Services Private Limited, acting as the Applicant/Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Nobility Estates Pvt. Ltd, the Respondent/Corporate Debtor. The application was filed on 2023-05-25, seeking a declaration of moratorium and appointment of an Interim Resolution Professional (IRP). The Corporate Debtor was incorporated on 2014-01-02 and is involved in real estate activities. The Applicant claimed default based on a Debenture Subscription Agreement (DSA) where the Respondent failed to redeem Optionally Convertible Debentures (OCDs) even after a revised redemption date.

## Facts

ASK Trusteeship Services Private Limited (Applicant) filed an application under Section 7 of the IBC, 2016 against Nobility Estates Pvt. Ltd (Respondent/Corporate Debtor) to initiate CIRP. The Corporate Debtor was incorporated on 2014-01-02 and is involved in real estate activities. The Applicant and Respondent entered into a Debenture Subscription Agreement (DSA) dated 2015-07-10, where the Applicant subscribed to debentures issued by the Respondent. The Applicant disbursed Rs. 40,00,00,000/- on 2015-10-07, Rs. 25,00,00,000/- on 2015-11-03, and Rs. 60,00,00,000/- on 2016-03-22, totaling Rs. 125,00,00,000/- in Optionally Convertible Debentures (OCDs). The Respondent was required to make annual interest/coupon payments and redeem the OCDs within 5 years, i.e., by

…

## Issues and analysis

### Issue 1: Whether an investment made in the …

**Ratio:** Section 5(8) of IBC 2016 defines 'financial debt' as a debt along with interest, if any,

…

**Reasoning:** The court reasoned that the disbursement of money through investment in debentures, which

…

**Interpretation:** The term 'financial debt' under Section 5(8) of IBC 2016 is interpreted to

…

**Application:** In this case, the Applicant invested in the Debentures of the Corporate Debtor,

…

## Parties

- **Judges:** Ramalingam…; SH. L. N.…
- **Appellants:** ASK Trusteeship…
- **Respondents:** NOBILITY ESTATES…; M/s NOBILITY…

## Timeline

- **2014-01-02 — Incorporation of…**: Nobility Estates Pvt.…
- **2015-07-10 — Debenture Subscription…**: ASK Trusteeship Services Private Limited and Nobility Estates Pvt. Ltd. executed a…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nobility-estates-pvt-ltd-daf7303e