TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 901
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....cern M/s. Pashupati Jewellers having PAN-AQWPP9875A, having its office at 10174, Vasudev Tower, Gurudwara Road, Karol Bagh, New Delhi-110005. The Corporate Debtor is a limited company incorporated under the provisions of the Companies Act, 1956 on 02.07.2008, having CIN-U51109DL2008PLC180375 as per Master Data and having registered office at B-143, First Floor, B-6 Market, Preet Vihar, New Delhi-110092. The Authorized Share Capital of the Corporate Debtor is Rs. 41,00,000/- (Forty-One lakhs) and Paid-Up Share Capital is Rs. 40,92,500/- (Forty Lakhs and Ninety-Two Thousand Five Hundred Only) as per Master Data of the company. 3. The Applicant has stated that in around March, 2017, one Mr. Balkaran Singh Bhullar, (for brevity the Principal Borrower) had availed an unsecured loan of Rs. 2,60,00,000/- (Rupees Two Crore Sixty Lakhs) from the applicant in order to carry on his business of proprietorship firm M/s. B & B Wines vide Loan Agreement, dated 07.04.2017. The Principal Borrower after taking loan from the applicant, had assured to repay the loan amount within 2 to 4 months. The applicant has submitted that the Principal Borrower is a majority shareholder and director of the Corpo....
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....long with interest @18% per annum amounting to Rs. 88,53,000/- within seven days from the date of the notice. The principal borrower chose not to rely to the said notice of the applicant. 7. It is further submitted that the Applicant invoked the corporate guarantee tendered by the corporate debtor vide notice, dated 30.03.2019 and called upon the corporate debtor having co-extensive liability as that of the principal borrower to repay the principal amount along with interest within seven days from the receipt of the said notice. The corporate debtor had replied to the said notice vide letter, dated 09.04.2019, again raising dispute averments with respect to the payment of the due amount. 8. The Applicant filed Present Application on 29.05.2019 under section 7 of IBC, 2016 and served the copy of this application through speed post which has been duly delivered to the corporate debtor as per the tracking report. 9. The Corporate Debtor has replied to the application and has asserted that the loan agreement, dated 07.04.2017, is fabricated and the loan amount is never paid to the corporate debtor. It is further asserted that the corporate debtor had never received any money from th....
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....mount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in sub-clauses (a) to (h) of this clause;' Therefore, from a bare perusal of Section 5(8)(a) and (i) of I&B Code, the guarantee tendered by the corporate debtor vide Corporate Guarantee Agreement, dated 07.04.2017, falls within purview of section 5(8)(i) of the Code and there is a default of financial debt defined under section 3(12) of the I&B Code as the principal borrower and the corporate debtor both are jointly and severally liabile, who have defaulted in payment of the loan tendered by the applicant within the time specified under the loan agreement & guarantee agreement. 13. The applicant has submitted that the resolution passed in the board meeting of the corporate debtor held on 03.04.2017, has duly authorized Mr. Navlesh to sign and execute all agreements/other documents required to secure the loan tendered by the applicant to the principal borrower. The applicant has further asserted that the corporate debtor has also produced the pleadings in the civil suit filed by corporate debtor bearing C.S No 1958/18 title "Marigold Overseas Ltd. v. Pashupati Jewellers ???"....
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.... the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be". 15. Having heard the learned counsel for the applicant and having perused the documents on record, it is observed that the corporate debtor has not put on record any document evidencing that corporate guarantee agreement was not executed between the corporate debtor and the applicant. The corporate debtor has tried to challenge the genuinely of the corporate guarantee agreement but the same is a lame excuse. It seems that corporate debtor anticipating the triggering of I & B Code against it, had filed a suit challenging the authority of executant of corporate guarantee agreement and endeavored to defeat the claim of the applicant. 16. The application is complete as per the requirements of section 7 of the code. Further the default occurred on 07.04.2018, hence the debt is not time-barred and the application is filed within the period of limitation. 17. The re....