Court Orders Meeting of Debenture Holders for Resolution Plan: Trust Deed Interpretation Key

The court granted ad-interim relief to convene a meeting of debenture holders to consider a Resolution Plan, directing Defendant No.2 to call the meeting within two weeks in accordance with the Debenture Trust Deed clauses. The interpretation of the Trust Deed was crucial, emphasizing adherence to its provisions for calling and conducting meetings. The court underscored the importance of following the Trust Deed over SEBI circulars, applying a previous decision's law to govern debenture holder meetings and ensuring compliance with the legal framework.

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Issues:
1. Ad-interim relief sought for convening a meeting of debenture holders to consider a Resolution Plan.
2. Interpretation of Debenture Trust Deed clauses regarding the calling and conducting of meetings.
3. SEBI circular's impact on the calling and conduct of debenture holder meetings.
4. Applicability of the law laid down in a previous court decision regarding the governance of debenture holder meetings.
5. Direction for Defendant No.2 to call a meeting of debenture holders within two weeks.

Analysis:
1. The applicants/plaintiffs sought ad-interim relief for convening a meeting of debenture holders to consider a Resolution Plan approved by ICA lenders. The relief was granted, directing Defendant No.2 to call a meeting within two weeks, as per the Debenture Trust Deed clauses.

2. The interpretation of Debenture Trust Deed clauses was crucial in determining the procedure for calling and conducting meetings. The court referred to relevant clauses providing powers to sanction compromises or arrangements, emphasizing the need to follow the Trust Deed's provisions for debenture holder meetings.

3. The impact of a SEBI circular on debenture holder meetings was discussed, with the court emphasizing that the Debenture Trust Deed must be adhered to for calling and conducting meetings. A previous court decision supported this stance, dismissing the argument that SEBI resolutions should govern meetings.

4. The court applied the law laid down in a previous decision, upholding the importance of the Debenture Trust Deed in governing debenture holder meetings. This decision directed Defendant No.2 to call and conduct the meeting in accordance with the Trust Deed's provisions.

5. Finally, Defendant No.2 was directed to call a meeting of debenture holders within two weeks, following the law laid down by the court in a previous judgment. The terms of the respective Debenture Trust Deeds were to govern the calling, conducting, and voting at such meetings, ensuring compliance with the legal framework.

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