ITSL had filed the insolvency petition against CDEL in September 2023 claiming that the latter had defaulted on a payment of over ₹228 crore.
As per the petition, IDBITSL the financial creditor (FC) in the case, and CDEL, the corporate debtor, entered into a Debenture Trust Deed in 2019. The FC agreed to subscribe to non-convertible debentures worth ₹200 crore and CDEL agreed to pay the FC in lieu of the subscription money raised. However, CDEL defaulted in payment of such money on four occasions between 2019 and 2020.
CDEL had argued before the NCLT that IDBITSL was a debenture holder and thus had no power to file any application seeking CIRP against the Corporate Debtor.
The NCLT, however, disagreed. It held that as per the…
