# In the matter of SHREE VARDHMAN BUILDPROP PRIVATE LIMITED C.P. (IB)-445-ND-2023

> NCLT judgment dated 2024-04-29. Citation: TCN-2024-NCLT-01543. IDBI Trusteeship Services Limited, acting as the Debenture Trustee for Kautilya Finance BV,…

- **Court:** NCLT
- **Order date:** 29 Apr 2024
- **Citation:** TCN-2024-NCLT-01543
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-vardhman-buildprop-private-limited-cp-ib-445-nd-2023-69aa4798

## Summary

### Background

IDBI Trusteeship Services Limited, acting as the Debenture Trustee for Kautilya Finance BV, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Vardhman Buildprop Private Limited, the Corporate Debtor. The Corporate Debtor had issued debentures to Kautilya Finance BV to raise finance for a low-cost housing project. The Corporate Debtor defaulted on repayment obligations, leading to the application for CIRP.

## Facts

IDBI Trusteeship Services Limited, acting as the Debenture Trustee for Kautilya Finance BV, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Vardhman Buildprop Private Limited. Shree Vardhman Buildprop Private Limited is developing a low-cost housing project called "Shree Vardhman Mantra". To finance the project, the Corporate Debtor issued debentures to Kautilya Finance BV. Kautilya Finance BV is a foreign portfolio investor registered with SEBI. The Corporate Debtor issued an Information Memorandum-cum-Private Placement Offer Letter dated 14.06.2016. Under the Debenture Subscription Agreement dated 14.06.2016, Kautilya Finance BV agreed to subscribe to

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** The Adjudicating Authority has to merely satisfy the requirements as provided under

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**Reasoning:** The Adjudicating Authority considered the material placed on record and found that the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Adjudicating Authority found that the Applicant had provided sufficient

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** IDBI Trusteeship…
- **Respondents:** SHREE VARDHAMAN…

## Timeline

- **2016-06-14 — Debenture Subscription…**: M/s. Kautilya Finance BV agreed to subscribe to non-convertible debentures (NCDs) for INR…
- **2016-06-14 — Debenture Tru…**: Debenture Trust Deed entered into between the Corporate Debtor, the Promoters, and the…

## Legal provisions

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

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