# In the matter of RIVAAZ TRADE VENTURES PRIVATE LIMITED

> NCLT judgment dated 2025-04-09. Citation: TCN-2025-NCLT-01002. Axis Trustee Services Limited, the Financial Creditor (FC), filed a Section 7 application under…

- **Court:** NCLT
- **Order date:** 9 Apr 2025
- **Citation:** TCN-2025-NCLT-01002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/rivaaz-trade-ventures-private-limited-19f44488

## Summary

### Background

Axis Trustee Services Limited, the Financial Creditor (FC), filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against Rivaaz Trade Ventures Private Limited, the Corporate Debtor (CD), due to a default in the redemption of debentures.

## Facts

Axis Trustee Services Limited filed a Section 7 application against Rivaaz Trade Ventures Private Limited for default in payment of Rs.451,66,34,504/-.

The default was related to the redemption of debentures issued by Rivaaz Trade Ventures Private Limited.

Rivaaz Trade Ventures Private Limited issued 4000 rated, unlisted, secured, redeemable non-convertible debentures (NCDs) with a face value of Rs.10,00,000/- each.

The debentures were subscribed by Franklin India Short Term Income Plan and Franklin India Opportunities Fund.

The date of default mentioned in the application is 30.03.2021.

Rivaaz Trade Ventures Private Limited filed IA (IBC) No. 2236/MB/2023 challenging the maintainability of the Section 7 application based on Section 10A of the IBC.

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## Issues and analysis

### Issue 1: Whether the Section 7 application is …

**Ratio:** Section 10A of the IBC bars the initiation of CIRP for defaults occurring during the

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**Reasoning:** The NCLT found that the date of default mentioned in the application was 30.03.2021,

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**Interpretation:** The NCLT interpreted Section 10A to mean that it does not apply to defaults

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**Application:** The NCLT applied this interpretation to the facts of the case and concluded

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Respondents:** Rivaaz Trade…; Axis Trustee…
- **Other parties:** Ritesh Ag…; Kishore B…; +1 more
- **Advocates:** Ankit L…; Varun Na…; +12 more

## Timeline

- **2018-09-28 — Execution o…**: Rivaaz Trade Ventures Private Limited executed the Debenture Trust-cum-Mortgage Deed…
- **2020-10-22 — Notice b…**: Axis Trustee Services Limited issued a notice to Rivaaz Trade Ventures Private Limited…

## 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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