# In the matter of Rajesh Buildpaces Private Limited

> NCLT judgment dated 2025-02-18. Citation: TCN-2025-NCLT-00471. The case involves a Company Petition filed by Assets Care & Reconstruction Enterprise Ltd.…

- **Court:** NCLT
- **Order date:** 18 Feb 2025
- **Citation:** TCN-2025-NCLT-00471
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rajesh-buildpaces-private-limited-972a5677

## Summary

### Background

The case involves a Company Petition filed by Assets Care & Reconstruction Enterprise Ltd. (Financial Creditor) against Rajesh Buildspace Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Financial Creditor's claim arises from a default in payment of interest on debentures issued by the Corporate Debtor under a Debenture Trust Deed (DTD) dated 19.03.2018. The Corporate Debtor contested the petition, raising issues regarding the threshold limit for initiating CIRP, non-registration of default with Information Utility, and the validity of debt assignment.

## Facts

Assets Care & Reconstruction Enterprise Ltd. (Financial Creditor) filed a petition against Rajesh Buildspace Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The claim is based on a default in payment of interest on debentures issued by the Corporate Debtor under a Debenture Trust Deed (DTD) dated 19.03.2018. The Corporate Debtor issued non-convertible debentures worth INR 144 crores, with Altico Capital India Limited subscribing to INR 11 crores. Altico disbursed INR 11,27,72,500 to the Corporate Debtor. The interest period commenced from the date of allotment and ended on 30.06.2018. The Corporate Debtor allegedly defaulted on interest payments, leading Altico to issue a notice of payment

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## Issues and analysis

### Issue 1: Whether the default amount claimed by the Financial Creditor is below the prescribed threshold …

**Ratio:** The threshold limit for initiating CIRP is determined by the amount at the time of filing

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**Reasoning:** The petition was filed in 2019 when the threshold limit was Rs. 1 Lakh. The default

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**Interpretation:** Section 4 of the IBC specifies the minimum amount of default required for

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**Application:** Since the petition was filed when the threshold was Rs. 1 Lakh and the default

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Assets Care &…
- **Respondents:** Rajesh Buildspace…

## Timeline

- **2018-03-19 — Debenture Trust Deed…**: Vistra ITCL (India) Limited entered into a Debenture Trust Deed with the Corporate Debtor…
- **2018-06-30 — End of First Interest…**: The first interest period…

## 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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