2022 (2) TMI 252

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..... - The Appellant was clearly entitled for invocation of Bank Guarantee, hence, we remit the matter back to the Adjudicating Authority to pass appropriate orders with regard to claim of the Appellant to the amount to ₹ 19 Lakhs as included in the Bank Guarantee. Appropriate orders be passed by the Adjudicating Authority in accordance with law. Appeal allowed. - Company Appeal (AT) (Insolv .....

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..... ted. 2. Appellant has filed IA for directing the Resolution Professional and the Bank to make payment of the Bank Guarantee of ₹ 19 Lakhs. The Bank Guarantee was given by the Corporate Debtor on 03.08.2017 for a period of two years to secure the electricity dues payable to the Appellant. The Corporate Insolvency Resolution Process (CIRP) proceedings were initiated against the Corporate De .....

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..... nk Guarantee cannot be invoked and the application is not maintainable. The reason given by the Adjudicating Authority is only to the following effect: IA No. 486 of 2020 is filed by Madhya Gujrat Vij Company Ltd. directing the RP and Bank to allow them to encash the Bank Guarantee of ₹ 19 lakhs. However, moratorium is in existence. In such situation, Bank Guarantee cannot be invoked. M .....

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..... of the corporate debtor, and proceedings against the corporate debtor may not be seriously impacted by the actions against assets of third party like surety. Bank guarantee can be invoked even during moratorium period issued under section 14 of the IBC in view of the amended provision under section 14 (3)(b) of the IBC. 5. Submission of learned counsel for the Appellant is that the order of .....

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..... an is pending before the Adjudicating Authority. We are of the view that the Appellant was clearly entitled for invocation of Bank Guarantee, hence, we remit the matter back to the Adjudicating Authority to pass appropriate orders with regard to claim of the Appellant to the amount to ₹ 19 Lakhs as included in the Bank Guarantee. Appropriate orders be passed by the Adjudicating Authority in .....

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