Section 180, The Companies Act, 2009

(1) A debenture holder shall be entitled to realise anysecurity vested in him or in any other person for his benefit if– (a) the company fails to pay any instalment of interest, or the whole or part of the principal or any premium, owing under the debenture or the debenture trust deed covering the debenture within one month after it becomes due; (b) the company fails to fulfil any of the obligations imposed on it by the debentures or the debenture trust deed; (c) any circumstances occur which by the terms of the debentures or debenture trust deed entitled the holder of the debenture to realise his security; or (d) the company is wound up. (2) A debenture holder whose debenture is secured by a general floating charge vested in him or the trustee of the covering debenture trust deed or any other person shall additionally be entitled to realise his security if– (a) any creditor of the company issues a process of execution against any of its assets or commences proceedings for winding up of the company by order of any court; (b) the company ceases to pay its debts as they fall due; (c) the company ceases to carry on business; (d) the company suffers, after the issue of debentures of the class concerned, losses or diminution in the value of its assets which in the aggregate amount to more than one-half of the total amount owing in respect of debentures of the class held by the debenture holder who seeks to enforce his security and debentures whose holder ranks before him for payment of principal or interest; or (e) any circumstances occur which entitles a debenture holder who ranks for payment of Realisation of holder’s security. register and copies of instruments. 128 129 principal or interest in priority to the debentures secured by the general floating charges to realise his security.