HSA Advocates successfully represented IDBI Trusteeship Services Limited in proceedings before the National Company Law Appellate Tribunal (NCLAT), New Delhi.

HSA Advocates represented IDBI Trusteeship Services Limited (IDBI), in its capacity as a Debenture Trustee for Assets Care & Reconstruction Enterprise Ltd. (ACRE), in an appeal challenging the initiation of the Corporate Insolvency Resolution Process (CIRP) against Shipra Estate Ltd. under the Insolvency and Bankruptcy Code, 2016. Shipra Estate Ltd. had stood as a corporate guarantor for a loan facility availed by Just About Movies Pvt. Ltd. (JAMPL) from IIFL Finance Ltd., which subsequently defaulted on repayment obligations. IDBI Trusteeship, as Debenture Trustee for IIFL, had filed a petition under Section 7 of the IBC before the NCLT, New Delhi, which admitted the CIRP against Shipra Estate Ltd. Upon assignment of the debt to ACRE, the order was challenged by the suspended board of Shipra Estate Ltd. Before the NCLAT.

The NCLAT initially permitted the appellants to explore a settlement under Section 12A of the IBC and granted interim relief. However, despite multiple extensions, no resolution materialised. HSA successfully opposed any further delay in the proceedings, leading to the NCLAT vacating the interim stay and upholding the admission order passed by the NCLT. The ruling paves the way for continuation of the CIRP against Shipra Estate Ltd., thereby safeguarding the interests of the financial creditor and reinforcing the integrity of the IBC framework.

The matter was led by HSA’s restructuring and insolvency team comprising Partner Abhirup Dasgupta, Associate Partner Ishaan Duggal, and Senior Associate Ruchi Goyal, who advised on strategy, drafted pleadings, and represented the financial creditor before the NCLT and the NCLAT, New Delhi.