BEACON TRUSTEESHIP LTD. Vs. EARTHCON INFRACON

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) Applications for intervention are allowed. Application for impleadment is allowed to the extent of intervention.

(3.) The facts, in short, are that Debenture Trust Deed (for short 'DTD') was entered into between Respondent No.1 (Corporate Debtor)/Earthcon Infracon Private Limited and the appellant/Beacon Trusteeship Limited, the Respondent No.1 issued 3000 senior, secured, transferable, unlisted, unrated, redeemable, non-convertible debentures of face value of Rs.1,00,000/- on a private placement basis against the deposit of Rs.30 Crores. On 20.12.2017 and 24.12.2018, DTD was amended twice to raise additional funds of Rs.20 Crores and Rs.2,50,00,000/- on similar basis. The appellant filed petition (CP No.1348/2019) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for short, 'the IBC') against Respondent No.1/Earthcon Universal Infratech Private Limited, one of the Corporate Guarantors of Respondent No.1. On 11.06.2019, Demand Notice under Section 8 of the IBC was issued by the Operational Creditor/Respondent No.2 against Respondent No.1. On 03.07.2019, Demand Notice was issued by the appellant calling upon Respondent No.1 to redeem all the debentures and make a payment of Rs.63,39,68,719/- along with all applicable charges/interest etc. Ultimately, the appellant, on 26.07.2019, filed an application under Section 7 of the IBC against Earthcon Construction Pvt. Ltd., being one of the Corporate Guarantors of Respondent No.1 in the DTD. However, on the basis of notice issued on 11.06.2019 under Section 8 of the IBC, Respondent No.2 (Operational Creditor)/Emperos Infrastructure Private Limited filed proceedings including under Section 9 of the Arbitration and Conciliation Act, 1996.