There is no fetter in Law for the Debenture Holder to file an application u/s 7 of IBC seeking to initiate CIRP without adding the Debenture Trustee – Mr. T. Prabakar Vs. Mr. S Krishnan – NCLAT Chennai
NCLAT affirmed the order of AA and held that that there is no fetter in Law for the Debenture Holder to file an application seeking to initiate CIRP against the concerned, without adding the Debenture Trustee. Even the Trust Deed is not restricting the rights of 2nd and 3rd Respondents from acting, in the absence of Debenture Trustee. To put it precisely, the Debenture Trust Deed gives right to the 2nd and 3rd Respondents to act. Continuing further, in the present case, 100% of the Debenture Holders had preferred the application under Section 7 of the Code and they are the Financial Creditors and they do have a right to file an application seeking to invoke the provisions of the Code. Further that, the aspect of name change will not affect the default committed by the Corporate Debtor.
