9911796707
TMI Blog2022 (1) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... d annually and on timely basis. It is also clear from the records of the Corporate Debtor that the Respondent took illegal benefit of initiation of CIRP of the Corporate Debtor on 27.03.2019 and recovered unlawfully Bank Guarantees in violation of Section 14 of the Code. The Bench notes that this act of the Respondent is a clear violation of the provisions of Section 14 of the Code i.e. moratorium and the Respondent should not have proceeded with encashing the Bank Guarantee during the CIRP period. The Bench also notes that these Bank Guarantees are covered within the definition of the Terms Security Interest and is hit by Section 14(1)(c) of the Code. The Bench directs the Respondent, Engineering Projects (India) Limited to refund an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The Applicant submits that after the commencement of the CIRP of the Corporate Debtor, the Bank Guarantees which are total 2 in number aggregating to Rs. 34,28,000/- were encashed by Respondent, Engineering Projects (India) Limited in March, 2019 in total violation of the provision of Section 14 of the IBC, 2016. 4. The Bench notes that these multiple Bank Guarantees were provided against mobilisation advances by the Corporate Debtor to the Respondent, Engineering Projects (India) Limited and the same was encashed on 28.03.2019 i.e. after the commencement of the CIRP of the Corporate Debtor on 27.03.2019. 5. The Bench notes that these bank guarantees were encashed on 28.03.2019. A snapshot of the summary of the Bank Guar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated by the Corporate Debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) .. (2) . .. .. (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process; Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi High Court in Power Grid Corporation of India V. Jyoti Structures Limited wherein the judiciary has interpreted Section 14 as being benevolent to the corporate debtor i.e. it would not apply to the proceedings which are in benefit of the corporate debtor in as much the proceedings are not debt recovery actions and its conclusion would not endanger, diminish, dissipate or impact the assets of the corporate debtor in any manner whatsoever and hence shall be in sync with the purpose of moratorium . So as a corollary, any debt recovery actions are prohibited during the Moratorium period. 12. In view of the above, the Bench directs the Respondent, Engineering Projects (India) Limited to refund an amount of Rs. 34,28,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
