# In the matter of Starlite Builders Private Limited (IB)-465(ND)-2022

> NCLT judgment dated 2022-09-20. Citation: TCN-2022-NCLT-00991. Vision Multiplex Private Limited, the Applicant/Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 20 Sept 2022
- **Citation:** TCN-2022-NCLT-00991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/starlite-builders-private-limited-ib-465nd-2022-0dad4fd1

## Summary

### Background

Vision Multiplex Private Limited, the Applicant/Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Starlite Builders Private Limited, the Respondent/Corporate Debtor. The application pertains to a default on debentures issued by the Respondent to the Applicant. The Respondent issued debentures to the applicant, and the applicant claimed default in repayment of principal and interest. The applicant had previously filed an application under Section 7 of the IBC, 2016, which was dismissed because it was based solely on interest that had accrued

…

## Facts

Vision Multiplex Private Limited (Applicant/Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Starlite Builders Private Limited (Respondent/Corporate Debtor). The application is based on the Respondent's default on debentures issued to the Applicant. The Respondent issued 4,00,000 debentures on March 31, 2011, with a face value of Rs. 10/- and a security premium of Rs. 990/- per debenture, totaling Rs. 1000/- per debenture. The debentures were issued under a Debenture Certificate dated April 13, 2021. The terms and conditions of the debentures were mutually revised to carry an interest/coupon rate of 6% p.a., payable at the end of every quarter

…

## Issues and analysis

### Issue 1: Whether the 'Debentures' fall within the definition of 'Financial Debt' under Section 5(8)(c) of …

**Ratio:** Section 5(8) of the IBC defines 'Financial debt' as a debt along with interest, if any,

…

**Reasoning:** The Adjudicating Authority considered the special resolution passed by the Respondent

…

**Interpretation:** The interpretation of 'Financial Debt' under Section 5(8)(c) of the IBC is

…

**Application:** In this case, the amount raised by the Respondent through the issuance of

…

## Parties

- **Judges:** DHARMINDER…; L. N. G…
- **Appellants:** Vision Multiplex…
- **Respondents:** Starlite Builders…

## Timeline

- **2010-06-21 — Incorporation of…**: Starlite Builders Private Limited…
- **2011-03-31 — Issuance of De…**: 4,00,000 Debentures were issued and allotted to…

## 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)

---

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/starlite-builders-private-limited-ib-465nd-2022-0dad4fd1