NCLT rejects Vistra ITCL’s plea to include additional claim in Satra Properties insolvency
NCLT) dismissed an application filed by Vistra ITCL to direct the resolution professional (RP) of realty developer Satra Properties India to include its additional claim of Rs 51 crore that would have taken its total admitted claim to over Rs 131 crore.
Vistra informed the bankruptcy court that the RP had partially rejected the lenders’ financial claim, which should have been admitted in its entirety. Currently, the admitted amount against Satra Properties is around Rs 386 crore, wherein Vistra has a 22.25% voting share with admitted dues worth Rs 79 crore.
Calculation of interest on outstanding non-convertible debentures (NCDs) formed a key component of the matter. In its application, Vistra argued that originally, it had agreed with Satra Properties to lend the funds at 18% interest per annum; however, the RP has calculated its dues at a lower revised rate of 9%.
The dispute centred around whether failure to redeem the NCDs would revive the original interest rate of 18% or if the reduced rate of 9% would continue to apply.
Appearing for the RP, advocate Pulkit Sharma argued that if both parties intend to revoke the 9% interest rate and revive it at 18%, it would have been expressly specified in the agreement as it was mentioned when interest was reduced from 18% to 12%. The specific non-mentioning of the clause in the subsequent agreement clearly establishes the intention between the parties, Sharma said.
The Mumbai bench of NCLT examined communication between the parties and noted that while the initial
