IFCI Limited vs Sutanu Sinha - 2023 Supreme(SC) 1255

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(SC) 1255

SANJAY KISHAN KAUL, SUDHANSHU DHULIA, AHSANUDDIN AMANULLAH
IFCI Limited – Appellant
Versus
Sutanu Sinha – Respondent

Advocates appeared:
For the Appellant(s) : Mr. Vivek Chib, Sr. Adv. Mr. Amish Tandon, Adv. Mr. Sameer Abhyankar, AOR Ms. Anushree Kulkarni, Adv. Ms. Mansi Gupta, Adv. Ms. Unnati Jhunjhunwala, Adv. Mr. Rithvik Mathur, Adv. Mr. Rahul Kumar, Adv. Mr. Harsh, Adv. Mr. Aakash Thakur, Adv. Ms. Nishi Sangtani, Adv. Ms. Vani Vandan Chhetri, Adv. Mr. Ayush Beotra, Adv.
For the Respondent(s): Mr. Shyam Divan, Sr. Adv. Mr. Saket Shukla, Adv. Mr. Sahil Tagotra, AOR Ms. Neha Naik, Adv. Ms. Madhavi Doshi, Adv. Ms. Sanaea Laskar, Adv. Ms. Abhivyakti Banerjee, Adv. Mr. Rongon Chowdhury, Adv. Mr. Ramji Srinivasan, Sr. Adv. Ms. Pooja Mahajan, Adv. Ms. Komal Abrol, Adv. Mr. Avinash B. Amarnath, AOR Mr. Naman Golechha, Adv. Mr. Ritin Rai, Sr. Adv. Mr. Prateek Kumar, Adv. Ms. Raveena Rai, Adv. Mr. Rohit Ghosh, Adv. Ms. Smriti Nair, Adv. Mr. Aman Shukla, Adv. M/S. Khaitan & Co., AOR

JUDGMENT :

SANJAY KISHAN KAUL, J.

1. Commerce has evolved. The documents forming the base of commerce have also evolved and created a hybrid nature of documents. Thus, what was earlier labelled as a debenture, now has hybrid versions such as partly convertible debentures, optionally convertible debentures and Compulsorily Convertible Debentures (CCDs). We may note that traditionally debentures were treated as a floating security with a covenant for payment on a specified date.¹[In re Crompton & Co. Ltd. [1914] 1 Ch. 954.

2. In the factual scenario of the present case, we are concerned with a Highway project in which the appellant has made investments through the CCDs. The National Highways Authority of India (NHAI) had awarded the project in question in terms of a Concession Agreement dated 25.03.2010 executed between it and the IVRCL Chengapalli Tollways Ltd (ICTL). ICTL was in turn a subsidiary Company of IVRCL which was holding 100 per cent share capital of ICTL. A consortium of lenders had provided term loan facility to the ICTL to execute various documents including the company loan agreement dated 24.11.2010 and the balance project was to be financed by IVRCL through equity infu

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2023 Supreme(SC) 1255

SANJAY KISHAN KAUL, SUDHANSHU DHULIA, AHSANUDDIN AMANULLAHIFCI Limited – AppellantVersusSutanu Sinha – Respondent

Cases Referred (1)

SANJAY KISHAN KAUL, SUDHANSHU DHULIA, AHSANUDDIN AMANULLAH
IFCI Limited – Appellant
Versus
Sutanu Sinha – Respondent