# In the matter of Taquito Lease Operators Limited

> NCLT judgment dated 2023-11-10. Citation: TCN-2023-NCLT-00760. The case pertains to a Company Petition (IB)-419(MB)/2023 filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 10 Nov 2023
- **Citation:** TCN-2023-NCLT-00760
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/taquito-lease-operators-limited-0a6cab92

## Summary

### Background

The case pertains to a Company Petition (IB)-419(MB)/2023 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Centbank Financial Services Limited ('Financial Creditor') against M/s Taquito Lease Operators Limited ('Corporate Debtor') for defaulting on a debt of ₹321,71,71,304.63 as of 31.03.2022. The Corporate Debtor had issued debentures and later requested a one-time restructuring, which was approved by the Debenture Holder. Despite the restructuring, the Corporate Debtor failed to meet its obligations, leading to a demand notice and subsequent recall of the entire loan. The Corporate Debtor admitted to the default but cited the impact of the Covid-19 pandemic on its business. The Financial Creditor then filed the petition to initiate the Corporate

…

## Facts

M/s Taquito Lease Operators Limited ('Corporate Debtor') is engaged in the business of building and procuring moveable and immovable fixed assets conducive to the retail business, and leases the assets on a long-term operating lease to companies in the retail sector. The Corporate Debtor issued and allotted 3000 secured, rated, redeemable, non-convertible debentures ('Debentures') each bearing a face value of INR 10,00,000 (Indian Rupees Ten Lakhs only), the aggregate nominal value being INR 300,00,00,000 (Indian Rupees Three Hundred Crores only) in 2018. Punjab National Bank ('Debenture Holder') subscribed to 2550 Debentures for an aggregate nominal value of INR 255,00,00,000. Centbank Financial Services Limited ('Financial Creditor') was appointed as the debenture

…

## Issues and analysis

### Issue 1: Whether the Company Petition (IB) 419(MB)/2023 should be admitted under Section 7 of the Insolvency …

**Ratio:** As per Innoventive Industries Limited vs. ICICI Bank and Another (2018)1 SCC 407, the

…

**Reasoning:** The court reasoned that the Financial Creditor has provided sufficient evidence to prove

…

**Interpretation:** The interpretation of Section 7 of the IBC, as clarified by the Supreme Court,

…

**Application:** In this case, the Financial Creditor has proven the existence of debt and

…

## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Centbank Financial…
- **Respondents:** Taquito Lease…; M/s. Taquito…

## Timeline

- **2018-01-09 — Debenture Subs…**: Punjab National Bank subscribed to 2550 Debentures for an aggregate nominal value of INR…
- **2018-02-22 — Debenture Trustee…**: Debenture Trustee Agreement executed between the Corporate Debtor and the Debenture…

## 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/taquito-lease-operators-limited-0a6cab92