NCLT Mumbai Admits Insolvency Plea Against Dynamix Securities For Default Of Rs. 518.89 Crore

The National Company Law Tribunal (NCLT), Mumbai has admitted an insolvency petition against Dynamix Securities and Holdings Private Limited over a default of ₹518.89 crore to DB View Infracon Private Limited.

A bench comprising Judicial Member Ashish Kalia and Technical Member Banwari Lal Meena held that the consent decree constituted an acknowledgment of the debt and liability in writing.

Relying on a Supreme Court ruling, it observed that a decree or recovery certificate establishes a fresh cause of action for initiating insolvency proceedings. The tribunal also condoned an additional five-day delay in filing the petition.

Yes Bank had sanctioned a term loan of ₹154 crore to Dynamix Securities on March 20, 2014. Under a Deed of Assignment dated March 31, 2016, Yes Bank transferred the entire debt to DB View Infracon.

On September 19, 2017, the Bombay High court passed a consent decree under which Dynamix Securities agreed to repay the loan. Execution of the decree was kept in abeyance for nine months to allow the company to sell its assets and repay the debt.

Following the settlement, an earlier insolvency petition filed by DB View Infracon was disposed of on October 5, 2017, with liberty to revive the proceedings or file a fresh petition.

DB View Infracon initiated execution proceedings before the Bombay High court in 2018 after Dynamix Securities failed to repay the loan. Although properties belonging to other judgment debtors were sold, the proceeds only partly covered the dues.

The financial creditor filed the present insolvency petition on April 9, 2024, claiming ₹518.89 crore was outstanding. The NCLT fixed the default date as June 19, 2018, and condoned a delay of five days after finding a calculation error in the earlier application.

Dynamix Securities did not appear despite service of notice. The tribunal admitted the petition and appointed S. Gopalakrishnan as IRP.