A Case to Re­mem­ber

Consumer Voice - - Bfsi Guide -

Un­der In­sol­vency and Bank­ruptcy Code (IBC) 2016, the New Delhi bench of Na­tional Com­pany Law Tri­bunal (NCLT) passed an or­der, dated 1 Au­gust 2017, ad­mit­ting an ap­pli­ca­tion for ini­ti­at­ing cor­po­rate in­sol­vency res­o­lu­tion by a guar­an­tor of a cor­po­rate debtor.

Su­mit Avi­a­tion Pri­vate Lim­ited (cor­po­rate debtor/bor­rower) had taken a loan from Pun­jab Na­tional Bank and the pe­ti­tioner, Davin­der Ah­luwalia, was the guar­an­tor for the said loan and had mort­gaged his im­mov­able prop­erty with the bank. To re­deem the afore­said mort­gage of his prop­erty and re­duce the li­a­bil­ity of the cor­po­rate debtor, the guar­an­tor paid a sum of Rs 1.05 crore to the bank.

On the fail­ure of the cor­po­rate debtor to re­pay the above-men­tioned amount to the guar­an­tor, he in­voked pro­ceed­ings against the cor­po­rate debtor by fil­ing an ap­pli­ca­tion to ini­ti­ate the cor­po­rate in­sol­vency res­o­lu­tion process for re­cov­ery of his dues. To sup­port of his ap­pli­ca­tion, the guar­an­tor at­tached his bank state­ments ev­i­denc­ing the loans ag­gre­gat­ing to around Rs 29 lakh, which had been ad­vanced by him (guar­an­tor) to the debtor. The guar­an­tor also at­tached copies of cheques is­sued by the cor­po­rate debtor to him for the afore­said amount, which was re­turned dis­hon­oured.

On ac­count of the above facts, the NCLT ad­mit­ted the ap­pli­ca­tion of the guar­an­tor and ap­pointed the in­terim res­o­lu­tion pro­fes­sional (IRP) pro­posed. It fur­ther di­rected the IRP to make a pub­lic an­nounce­ment and de­clare mora­to­rium for pro­hibit­ing cer­tain ac­tions as pre­scribed un­der IBC, in­clud­ing stay of pend­ing pro­ceed­ings, etc., against the cor­po­rate debtor dur­ing the mora­to­rium pe­riod.

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