Optionally Convertible Debentures covered within the purview of financial debt

Santosh Kumar Vs ASK Trusteeship Services Private Limited (NCLAT New Delhi) NCLAT New Delhi held that Optionally Convertible Debentures (OCDs) are the financial debt within the meaning of section 5(8)(c) of the Insolvency and Bankruptcy Code (IBC). Accordingly, application filed u/s. 7 admissible. Facts- A Debenture Subscription Agreement (DSA) was executed where the Financial Creditor, the Respondent No.1 subscribed to unlisted optionally convertible cumulatively secured debentures (OCD) aggregating to Rs. 125,00,00,000/- issued by the Corporate Debtor. On 31.07.2021, the Corporate Debtor fai...