9911796707
TMI Blog2023 (11) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... 25.08.2020, the debt became due for payment thereafter. As per the provisions of Section 10-A of IBC, 2016, CIRP cannot be initiated for defaults arising in 12 months period beginning 25.03.2020. Since the Deed of Guarantee was invoked on 25.08.2020, CIRP cannot be initiated for default in repayment as the default arises in the period excluded by provisions of Section 10A of IBC, 2016. The AA has rightly held that the default falls within the specified period in Section 10-A of the IBC, 2016 and the Application U/s 7 of IBC, 2016 is non maintainable. Appeal dismissed. - Hon'ble Justice Anant Bijay Singh (Member(Judicial) And Hon'ble Mr. Ajai Das Mehrotra (Member (Technical) For the Appellant : Mr. Dilip Kumar Niranjan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution Process (`CIRP ) against the Corporate Guarantor, the Respondent herein. The AA (NCLT Mumbai, Court IV) vide their Order dated 09.03.2023 in C.P. (IB) No. 143(MB)/2021 had dismissed the Application as not maintainable on the grounds that Financial Creditor had invoked the Corporate Guarantee on 25.08.2020, which is falling under the period specified under Section 10-A of the IBC, 2016 and for which CIRP cannot be initiated. 3. Learned Counsel for the Appellant submitted that the AA erred in taking date of invocation of Guarantee and the Guarantee was invoked vide letter dated 11.06.2019 given at Page 176 and 177 of the Appeal Paper Book. 4. Learned Sr. Counsel appearing for the Respondent/Corporate Guarantor took us throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity given to both sides to file Written Submission within seven days vide daily Order dated 31.08.2023, both the Appellant and Respondent have filed Written Submissions, which are reiteration of submissions made earlier. 7. We have heard both the sides and have gone through the documents on record. Notice for invocation of Bank Guarantee addressed to the Corporate Guarantor, the Respondent herein was issued by the Advocate of the Appellant on 25.08.2020, which is available from Page 180 to 185 of the Appeal Paper Book. In this Notice, nowhere the Appellant had mentioned the earlier letter dated 11.06.2019. The earlier letter dated 11.06.2019 was addressed to Mr. Hemendra Aran and Mrs. Gitanjali Sinha in their personal names as Directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to any default committed under the said sections before 25th March 2020. (Through Notification dated 24.09.2020 and 22.12.2020, the period was extended and the cumulative period was twelve months w.e.f. 25.03.2020.) 9. Since the Deed of Guarantee was invoked on 25.08.2020, CIRP cannot be initiated for default in repayment as the default arises in the period excluded by provisions of Section 10A of IBC, 2016. The AA has rightly held that the default falls within the specified period in Section 10-A of the IBC, 2016 and the Application U/s 7 of IBC, 2016 is non maintainable. We have not gone into the merits of the claim of the Appellant and our decision herein should not prejudice the Claim of the Appellant before any Authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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