# In the matter of Taxus Infrastructure and Power Projects Pvt. Ltd.

> NCLT judgment dated 2024-05-29. Citation: TCN-2024-NCLT-01278. Waaree Energies Limited filed I.A. 2068/2023 under Section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 29 May 2024
- **Citation:** TCN-2024-NCLT-01278
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/taxus-infrastructure-and-power-projects-pvt-ltd-3b7651d2

## Summary

### Background

Waaree Energies Limited filed I.A. 2068/2023 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the rejection of its claim by the Resolution Professional/Respondent. Waaree sought the setting aside of the order dated 06.01.2023, which rejected its claim, and recognition as a Financial Creditor. They also requested that the Resolution Professional allow them a seat in the CoC and participation in CoC meetings with full rights under the IBC, 2016. The applicant had filed a claim for Rs. 21,45,42,466/- in Form-C, which was rejected. The applicant had invested Rs. 10 crore in Compulsory Convertible Debentures based on a Debenture Subscription Agreement (DSA) with the Corporate Debtor. Upon maturity, the applicant was entitled to convert the

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## Facts

Indian Renewable Energy Development Agency Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against M/s Taxus Infrastructure and Power Projects Pvt. Ltd. Waaree Energies Limited, claiming to be a financial creditor, filed a claim of Rs. 21,45,42,466/- which was rejected by the Resolution Professional (RP), Mr. Darshan Singh Anand. Waaree Energies Limited had invested Rs. 10 crore in Compulsory Convertible Debentures (CCDs) of Taxus Infrastructure based on a Debenture Subscription Agreement (DSA) dated 16.10.2012. The DSA stipulated that the CCDs were to be converted into equity within 65 months from the date of allotment. The DSA also included a clause stating that failure to convert the CCDs would constitute an event of default, entitling Waaree Energies

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## Issues and analysis

### Issue 1: Whether the Compulsory Convertible Debentures (CCDs) in the present case should be categorized as a …

**Ratio:** The legal principle applied is the interpretation of Section 5(8) of the IBC, which

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**Reasoning:** The court reasoned that the DSA specifically directed the Corporate Debtor to repay the

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**Interpretation:** The court interpreted the term 'financial debt' under the IBC to include

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Indian Renewable…
- **Respondents:** M/s Taxus…

## Timeline

- **2012-10-16 — Debenture Subscription…**: Corporate Debtor executed an unconditional personal guarantee in favor of the Applicant,…
- **2017-12-08 — Demand for Re…**: Applicant demanded repayment of INR…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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