# Catalyst Trusteeship Ltd. vs. Ecstasy Realty Pvt. Ltd.

> SC judgment dated 2026-02-24. Citation: TCN-2026-SC-00075. Catalyst Trusteeship Ltd. (debenture trustee) filed an application under Section 7 of the…

- **Court:** SC
- **Order date:** 24 Feb 2026
- **Citation:** TCN-2026-SC-00075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/catalyst-trusteeship-ltd-vs-ecstasy-realty-pvt-ltd-qwppc

## Summary

### Background

Catalyst Trusteeship Ltd. (debenture trustee) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Ecstasy Realty Pvt. Ltd. (corporate debtor) due to a default on non-convertible debentures. The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) dismissed the application, reasoning that a moratorium was in place due to restructuring discussions between the corporate debtor and one debenture holder (ECL Finance Limited - ECLF), and that the debenture trustee was aware of and implicitly agreed to the restructuring.

## Facts

Ecstasy Realty Pvt. Ltd. (respondent) proposed a residential-cum-retail project in Mumbai and issued 850 redeemable non-convertible debentures worth ₹850 crore in two series (A and B).

A Debenture Trust Deed (DTD) was executed on 27.03.2018 between Catalyst Trusteeship Ltd. (debenture trustee), Ecstasy Realty Pvt. Ltd., and Shobhit J. Rajan (mortgage provider).

Series A debentures (₹600 crore) were fully subscribed and disbursed on 28/29.03.2018, with holders including ECL Finance Limited (ECLF), Edelweiss Finvest Pvt. Ltd., and Barbelo Estates LLP. Series B debentures (₹250 crore) were never issued.

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## Issues and analysis

### Issue 1: Whether the NCLT and NCLAT erred in dismissing the application under Section 7 of the Insolvency …

**Ratio:** The NCLT and NCLAT erred by disregarding the express terms of the Debenture Trust Deed

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**Reasoning:** The DTD explicitly outlined procedures for modification (Clause 33) requiring prior

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**Interpretation:** The terms of a Debenture Trust Deed are binding and cannot be unilaterally

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**Application:** The NCLT and NCLAT's findings that a moratorium was in place and that the

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## Parties

- **Judges:** SANJAY KU…; K. VINOD CHANDRAN,…
- **Appellants:** Catalyst Trusteesh…
- **Respondents:** Ecstasy Realty…
- **Other parties:** ECL Finance…; Edelweiss Finvest…; +1 more

## Timeline

- **2018-03-20 — Board Resolution &…**: Respondent company's Board of Directors passed a resolution to issue debentures, and the…
- **2018-03-27 — DTD Exec…**: Debenture Trust Deed (DTD) executed between the debenture trustee, respondent company,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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