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2021 (6) TMI 248 - NATIONAL COMPANY LAW TRIBUNAL , MUMBAI BENCHRedemption of Secured Non-Convertible Debentures (NCDs) - Scope of resolution plan on redemption - Seeking intervention in the captioned Company Petition - Petitioner are party to the ICA or not - debenture trustee - hearing of Application under Section 71(10) of the Act - no Resolution Plan has yet been finalised - HELD THAT:- Section 71(10) entitles the debenture holders and the debenture trustee to make the Application to the Tribunal where the Company fails to redeem the debentures on the date of the maturity or fails to pay the interest on the debentures when it is due. The issue of debentures is a contract between the debenture holders and the Respondents. The Petitioner as the debenture trustee acts in the interest of the debenture holders and is specifically permitted under 71(10) of the Act to approach the Tribunal - the Applicant could not be classified as 'a person interested in the matter'. Besides the Petitioner in its Petition has clearly pleaded that neither it nor the debenture holders are parties to the ICA nor have acceded there to. Therefore, the Applicant cannot be regarded either as a necessary or proper party to the Company Petition. The statutory rights of the debenture holders cannot be sacrificed and jeopardized, under the garb of facilitating the Resolution Plan, which is yet to see the light of the day. The ends of justice certainly would not encourage or sanction such a contingency. Besides the Resolution of R1 and the rights of the Petitioner under Section 71(10) are independent of each other. The Resolution on the basis of an administrative Circular of the RBI would not thwart the statutory rights of the Petitioner. Therefore, hearing of the Company Petition in the absence of the Applicant would not be an abuse of the process of the Tribunal. The Application is frivolous and is devoid of any merits whatsoever - application dismissed.
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