# In the matter of NuFuture Digital (India) Limited IA No. 34-2023 in CP (IB) No.1147-MB-C-IV-2022

> NCLT judgment dated 2023-03-30. Citation: TCN-2023-NCLT-03981. The case involves an application filed by the Corporate Debtor, NuFuture Digital (India)…

- **Court:** NCLT
- **Order date:** 30 Mar 2023
- **Citation:** TCN-2023-NCLT-03981
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nufuture-digital-india-limited-ia-no-34-2023-in-cp-ib-no1147-mb-c-iv-2022-4b0bcf3a

## Summary

### Background

The case involves an application filed by the Corporate Debtor, NuFuture Digital (India) Limited, seeking the dismissal of Company Petition No. 1147/2022 filed by the Financial Creditor, Axis Trustee Services Limited. The Corporate Debtor argues that the default occurred during the period specified in Section 10A of the Insolvency and Bankruptcy Code (IBC), which bars the filing of applications under Section 7 for such defaults. The Financial Creditor claims that the default occurred after the period prescribed under Section 10A of the Code.

## Facts

NuFuture Digital (India) Limited, the Corporate Debtor, sought dismissal of Company Petition No. 1147/2022 filed by Axis Trustee Services Limited, the Financial Creditor. The Corporate Debtor argued that the default occurred during the period specified in Section 10A of the IBC, barring applications under Section 7. The Financial Creditor issued a notice on 22.10.2020 seeking full repayment due to an 'event of default'. The Corporate Debtor claimed this invoked a mandatory prepayment clause, preventing the Financial Creditor from claiming later payment due dates. The Financial Creditor subscribed to 2500 Non-Convertible Debentures (NCD) worth Rs. 250.00 crore on 28.09.2018. A Debenture Trust Cum Mortgage Deed (DTD) was executed on 06.12.2018. The Financial Creditor

…

## Issues and analysis

### Issue 1: Whether Section 10A of the Insolvency and Bankruptcy Code bars the filing of an application under …

**Ratio:** Section 10A of the IBC provides a bar on the initiation of corporate insolvency

…

**Reasoning:** The NCLT reasoned that Section 10A only bars the filing of applications under Section 7

…

**Interpretation:** Section 10A is interpreted as a temporary suspension of the right to initiate

…

**Application:** The NCLT applied this interpretation to the facts, finding that the first

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Respondents:** Nufuture Digital…; Axis Trustee…
- **Advocates:** Ritin…; Shyam Ka…; +1 more

## Timeline

- **2018-09-28 — Subscription…**: Financial Creditor subscribed to 2500 Non-Convertible Debentures (NCD) having total value…
- **2018-12-06 — Execution…**: A Debenture Trust Cum Mortgage Deed (DTD) was executed between the Financial Creditor and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/nufuture-digital-india-limited-ia-no-34-2023-in-cp-ib-no1147-mb-c-iv-2022-4b0bcf3a