Indian Renewable Energy Development Agency Limited Vs Waaree Energies Limited (NCLAT Delhi)
NCLAT Delhi held that issuer raising amount by issuance of convertible debenture is clearly a ‘financial debt’ within the meaning of section 5(8) of the IBC. Accordingly, appeal dismissed.
Facts- The Appellant had sanctioned financial assistance to the Corporate Debtor– M/s Taxus Infrastructure and Power Projects Pvt. Ltd. On account of default committed by the CD, the Appellant filed an Application u/s 7 of the Insolvency and Bankruptcy Code, 2016.
The Adjudicating Authority vide order dated 10.10.2022 admitted Section 7 Application and initiated CIRP against the CD. IRP made a public announcement on 12.10.2022. Respondent No.1 filed its claim in Form-C claiming an amount of Rs.21,45,42,466/-, which included Rs.11,45,42,466 as interest and Rs.10,00,00,000/- as principal amount.
In the claim form, Respondent No.1 relied on Arbitral Award dated 31.12.2021. In the claim Respondent No.1 had pleaded that it had funded the CD by subscribing 1,00,000 secured Compulsory Convertible Debentures of face value of Rs.1,000/- each for a period of 65 months. Respondent No.1 did not receive the payment under the Project Agreement, hence, initiated arbitration proceedings and an Award was given. The copy of the Debenture Subscription Agreement dated 16.10.2012, Shares Pledge Agreement and Promissory Notes were also relied by Respondent No.1 as well as Award dated 31.12.2021.
