# In the matter of Tikona Infinet Private Limited

> NCLT judgment dated 2025-05-01. Citation: TCN-2025-NCLT-00138. L&T Finance Limited, acting as the Financial Creditor, filed a Company Petition under Section 7…

- **Court:** NCLT
- **Order date:** 1 May 2025
- **Citation:** TCN-2025-NCLT-00138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tikona-infinet-private-limited-1498fa5b

## Summary

### Background

L&T Finance Limited, acting as the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Tikona Infinet Private Limited, the Corporate Debtor. The petition was filed due to an alleged default in payment of coupons related to Series ‘E’ Compulsorily Convertible Debentures (CCDs). The total default amount claimed was Rs. 1,16,01,25,183 as of June 30, 2024. The Corporate Debtor contested the claim, arguing that the coupon payments were contingent upon the availability of Distributable Cash and that the Financial Creditor's status was more akin to an investor than a financial creditor.

## Facts

L&T Finance Limited (Financial Creditor) filed a petition to initiate CIRP against Tikona Infinet Private Limited (Corporate Debtor) due to a default of Rs. 1,16,01,25,183 as of 30.06.2024. This default pertains to coupon payments on Series ‘E’ Compulsorily Convertible Debentures (CCDs). The petition was filed on 01.08.2024 under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Series ‘E’ CCDs were issued based on a Subscription Agreement (SSA) dated 28.08.2017 between L&T Infrastructure Finance Company Limited (predecessor-in-interest of the Financial Creditor) and the Corporate Debtor. The effective date as per SSA is 30.08.2018, making the coupon payment right commence from 30.08.2021. The Financial Creditor issued a Demand Notice on 04.03.2024 for

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## Issues and analysis

### Issue 1: Whether the coupon payments on Series ‘E’ Compulsorily Convertible Debentures (CCDs) constitute a …

**Ratio:** A financial debt is defined under Section 5(8) of the IBC as a debt along with interest,

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**Reasoning:** The NCLT reasoned that the disbursals into the Series ‘E' CCDs constituted disbursements

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**Interpretation:** The interpretation of Section 5(8) hinges on whether the coupon payments

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**Application:** The NCLT applied the ratio to the facts by noting that the coupon rights were

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## Parties

- **Judges:** ANIL RAJ C…; K. R. SAJI…
- **Appellants:** L&T Finance…
- **Respondents:** Tikona Infinet…

## Timeline

- **2017-08-28 — Subscription Agreement…**: SSA was entered into between L&T Infrastructure Finance Company Limited…
- **2018-08-30 — Effective Dat…**: The effective date as per SSA, making the…

## 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)

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