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TMI Blog2017 (10) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... residing at 7th Floor, 737, Fortune Tower, Sayajigunj, Vadodara-390005 and having Registration No. IBBI/IPA-002/IP-N00121/2017-18/10290 under Section 13 (1) (c) of the Code. The Interim Insolvency Resolution Professional is hereby directed to cause public announcement of the initiation of ‘Corporate Insolvency Resolution Process’ and call for submission of claims under Section 13(l)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Moratorium under Section 13(1)(a) of the IB Code issued. - C.P. NO. (IB) 81/7/NCLT/AHD./2017 - - - Dated:- 6-9-2017 - MR. BIKKI RAVEENDRA BABU, J. For The Applicant : Baiju Bhagat, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Act having its Registered Office in Indore, Madhya Pradesh. The Paid-up Share Capital of the Respondent Company is ₹ 1,59,88,500. The Main Object of the Respondent Company is to carry out the business of Real Estate. Respondent Company has given unconditional and irrevocable Corporate Guarantee for the financial assistance to the tune of ₹ 85.00 Crores granted and disbursed to Bhatia Global Trading Ltd., on 17.3.2011. The financial facilities granted to Bhatia Global Trading Ltd., was secured by Guarantee Agreement executed by the Respondent in favour of the Applicant on 17.3.2011. Bhatia Global Trading Ltd., availed the loan aggregating to ₹ 80 Crores which was secured by the Corporate Guarantee of the Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Communication. Applicant filed this Application on 12th July, 2017. Applicant despatched copy of the Application to the Respondent. This matter was listed for the first time before this Authority on 17th August, 2017. This Adjudicating Authority directed the. Applicant to serve notice of date of hearing. Respondent appeared through their Counsel. Learned Counsel for the Respondent filed Objections on 28.8.2017. Applicant also filed an Affidavit along with further documents. Heard the arguments of the learned Counsel appearing on both the sides. 6. The first objection raised is that Mr. Amit Kumar Nanda has no proper authority to file this Application and therefore it is liable to be rejected. In view of the Delegation of Powers, Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Application is not maintainable. 10.1 It is a settled law that liability of the Guarantor is co-extensive with that of the Principal Borrower. It is for the Creditor to choose against whom he wants to proceed. There is no bar in the Law which prevents any Creditor to proceed both against the Principal Borrower and Guarantor. Therefore, this objection is also not sustainable. 11. The next objection is that the Principal Borrower is already undergoing Corporate Insolvency Resolution Process in an Application filed by IDBI and therefore if Resolution Process is commenced against the Corporate Debtor it amounts to redundancy since the Corporate Debtor submitted Resolution Plan which consists of assets of the Guarantors also. 11.1 Res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payment of interest by executing the Loan Agreement, Mortgage Deeds etc. For such loan transaction, Respondent Company stood as a Guarantor as a Corporate Guarantor. Therefore, Respondent Company is under a legal obligation to repay the loan amount borrowed from the Principal Borrower. Therefore, the amount due to the Applicant from the Principal Borrower is a financial debt and as the Respondent stood as a Guarantor for the financial debt the Respondent shall be treated as a Corporate Debtor because the financial debt is due from him also to the Applicant. 14. The material on record clearly goes to show that Respondent committed default in repayment of the loan amount even after demand made by the Applicant Company. 15. The Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (l)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 18. This Adjudicating Authority hereby order moratorium under Section 13(1)(a) of the IB Code prohibiting the following as referred to in Section 14 of the Code; (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to forec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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