https://www.taxtmi.com/caselaws?id=756965 NCLAT Principal Bench allowed the appeal challenging an order that restrained invocation of a performance bank guarantee during corporate insolvency proceedings. The tribunal held that Section 14 moratorium provisions under IBC do not impact the right to invoke bank guarantees, citing SC precedent in State Bank of India v. V. Ramakrishnan. The adjudicating authority erred in finding the guarantee was conditional and no default existed. Evidence showed the contractor failed to complete work by the specified date (23.08.2018), with mechanical completion certificate issued only on 31.01.2019, constituting clear contractual breach. The tribunal ruled the guarantee invocation was valid despite ongoing moratorium proceedings. en-us Fri, 09 Aug 2024 00:00:00 +0530 Tue, 13 Aug 2024 07:06:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756965 NCLAT Principal Bench allowed the appeal challenging an order that restrained invocation of a performance bank guarantee during corporate insolvency proceedings. The tribunal held that Section 14 moratorium provisions under IBC do not impact the right to invoke bank guarantees, citing SC precedent in State Bank of India v. V. Ramakrishnan. The adjudicating authority erred in finding the guarantee was conditional and no default existed. Evidence showed the contractor failed to complete work by the specified date (23.08.2018), with mechanical completion certificate issued only on 31.01.2019, constituting clear contractual breach. The tribunal ruled the guarantee invocation was valid despite ongoing moratorium proceedings. Case-Laws Insolvency and Bankruptcy Fri, 09 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756965