2019 (11) TMI 1392

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.... Company Law Tribunal), Division Bench, Chennai by impugned order dated 8th April, 2019 admitted the application, giving rise to this Appeal. The Appellant is Promoter/ Suspended Director of M/s. Maharaja Theme Parks and Resorts Private Limited (Corporate Debtor). According to the Appellant, the application under Section 7 of the I&B Code was not maintainable against the Principal Borrower not being a Corporate Debtor. 2. The case of the Appellant is that the M/s. The Karur Vysya Bank Limited (hereinafter referred to as the Bank) advanced credit facility to three entities, namely: - (a) Sri Maharaja Refineries, a Partnership Firm. (b) Sri Maharaja Industries, a proprietary concern of K. Paramasivam. (c) Sri Maharaja Enterprises, a propriet....

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....corporate guarantor means a corporate person who is the surety in a contract of guarantee to a corporate debtor; 8. From the above definition, it is clear that a Corporate Person, who is the surety in a contract of guarantee to a Corporate Debtor comes within the meaning of Corporate Guarantor. 9. The Appellant M/s. Maharaja Theme Parks and Resorts Private Limited is a Corporate Person being a Company under the Companies Act, 2013. It has given a surety, but not in relation to a contract or guarantee to a Corporate Debtor. It has granted surety with regard to contract with a Debtor Firm or proprietary concern. Therefore, the Appellant - Company Appeal (AT) (Insolvency) No. 538 of 2019 Page 4 of 7 M/s. Maharaja Theme Parks and Resorts Priv....

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....lity Partnership Act, 2008, or any other person incorporated therein (except any financial service provider), comes within the meaning of Corporate Debtor. 15. It is not in dispute that M/s. Maharaja Theme Parks andResorts Private Limited is a Company under the Companies Act, 2013. Therefore, M/s. Maharaja Theme Parks and Resorts Private Limited comes within the meaning of Corporate Debtor. 16. Section 5(7) defines Financial Creditor, means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to. 17. Section 5(8) defines Financial Debt, means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes the ....

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.... of Section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (g) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price and for calculating the value of any derivative transaction, only the market value of such transaction shall be taken into account; (h) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, documentary letter of credit or any other instrument issued by a bank or financial institution; (i) the amount 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;" 18. Admittedly, the Borrowers have borrowed the money against pay....