# In the matter of Radius Estate Projects Private Limited

> NCLT judgment dated 2024-05-07. Citation: TCN-2024-NCLT-01421. Vistra ITCL (India) Limited filed an application (I.A. No.2680 of 2023) seeking directions…

- **Court:** NCLT
- **Order date:** 7 May 2024
- **Citation:** TCN-2024-NCLT-01421
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/radius-estate-projects-private-limited-5bcd0405

## Summary

### Background

Vistra ITCL (India) Limited filed an application (I.A. No.2680 of 2023) seeking directions against Mr. Vithal Madhukar Dahake, the Resolution Professional of Radius Estate Projects Private Limited, under Section 60(5) of the Insolvency & Bankruptcy Code, 2016. The applicant challenges the RP's decision to reject its claim as a secured financial creditor and instead classify it as 'any other secured creditor'. The applicant argues that it should be categorized as a secured financial creditor based on debentures issued and mortgages created in its favor by Radius Estate Projects Private Limited.

## Facts

Vistra ITCL (India) Limited (Applicant) was appointed as a Debenture Trustee under a Debenture Trust Agreement (DTD) dated 05.09.2017 between Aaditri Constructions Private Limited (ACPL, the Issuer Company) and the Applicant. ACPL issued secured optionally convertible debentures aggregating to Rs.395,00,00,000/- to the Debenture Holders, with Rs.340,00,00,000/- disbursed to ACPL in tranches from 04.10.2017 to 04.04.2019. Radius Estate Projects Private Ltd. (Corporate Debtor) created securities in favor of the Applicant, including a Supplemental Indenture of Mortgage (IoM) dated 29.03.2019 and a Second Supplemental IoM dated 16.04.2019. These mortgages secured the repayment of the debentures. ACPL defaulted on its obligations under the DTD, leading the Applicant to file

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## Issues and analysis

### Issue 1: Whether having regard to the terms of the Mortgage Deeds, the Corporate Debtor/Mortgagor can be …

**Ratio:** A mere promise to pay in a mortgage deed does not automatically import a personal

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**Reasoning:** The court found that the 'Covenant to Pay' clauses in the IoMs applied not only to the

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**Interpretation:** The expression 'Co-Obligor' was not defined in the DTD or IoMs. The Corporate

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**Application:** The court concluded that the Corporate Debtor's obligation was limited to the

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## Parties

- **Judges:** Reeta K…; SANJIV…
- **Appellants:** Vistra ITCL…
- **Respondents:** Radius Estate…; Vithal Madhukar…

## Timeline

- **2017-05-09 — Debenture Trustee…**: Debenture Trustee Agreement executed between Aaditri Constructions Private Limited and…
- **2017-10-04 — First Tranche…**: Release of the first…

## 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)

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