# In the matter of SL Residential Layout Private Limited

> NCLT judgment dated 2024-09-13. Citation: TCN-2024-NCLT-00603. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Sept 2024
- **Citation:** TCN-2024-NCLT-00603
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sl-residential-layout-private-limited-28f53725

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Aditya Chokshi Family Trust, the Financial Creditor, against SL Residential Layout Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 3,55,96,376/-. The Corporate Debtor issued Secured Redeemable Non-Convertible Debentures (Series B) to the Financial Creditor. The Corporate Debtor failed to redeem the debentures on the due date, leading to the default. A compromise decree was entered into between the parties, but the Corporate Debtor failed to adhere to the terms of the decree as well. The Financial Creditor initiated recovery proceedings under the SARFAESI Act. The Corporate Debtor argued that the default date should be considered as per the

…

## Facts

Aditya Chokshi Family Trust (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against SL Residential Layout Private Limited (Corporate Debtor) due to a default of Rs. 3,55,96,376/-. The Corporate Debtor issued Secured Redeemable Non-Convertible Debentures (Series B) to the Financial Creditor. The Corporate Debtor failed to redeem the debentures by the due date of 18.08.2021. A commercial suit was filed, resulting in a compromise decree dated 01.04.2022, which the Corporate Debtor also failed to comply with, with a revised due date of 31.08.2022. The Financial Creditor initiated recovery proceedings under the SARFAESI Act. The Corporate Debtor proposed a One Time Settlement (OTS) on 30.06.2023, which was also not adhered

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted …

**Ratio:** The Adjudicating Authority is to determine whether a 'default' has occurred and whether

…

**Reasoning:** The Corporate Debtor issued Debenture Certificate dt.18.08.2018 to the Debenture Holders

…

**Interpretation:** The existence of a debt and default are prerequisites for admitting an

…

**Application:** The Corporate Debtor failed to redeem the debentures on the due date and also

…

## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** M/s Aditya…
- **Respondents:** M/s SL Residential…

## Timeline

- **2016-01-01 — Insolvency and…**: The Insolvency and…
- **2017-06-07 — Incorporation of…**: M/s SL Residential Layout Private Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/sl-residential-layout-private-limited-28f53725