The National Company Law Tribunal (NCLT), Bengaluru has held that the appointment of a Debenture Trustee to represent debenture holders does not take away their independent statutory right as Financial Creditors to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).
A Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada was considering an insolvency petition filed by India Housing Fund and India Housing Fund Series 2 seeking initiation of the corporate insolvency resolution process (CIRP) against Gulam Mustafa Enterprises Private Limited. It held:
“The Respondent has not disputed the execution of the transaction documents or the receipt of the…