2018 (7) TMI 2144

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....on) And Justice Bansi Lal Bhat (Member(Judicial) For Appellant: - Mr. Vikas Mehta, Advocate. For Respondents:- Mr. P.V. Dinesh with Mr. Sunil Tripathi, Advocate. ORDER The Appellant- 'GAIL (India) Ltd.' intended to invoke the 'Performance Bank Guarantee' against the 'Corporate Debtor'- 'M/s. Petron Engineering Construction Limited'. The 'Resolution Professional' moved before the A....

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....) of sub-section (1) of Section 14 empowers the Adjudicating Authority to declare 'Moratorium' for prohibiting any action to foreclose, recover or enforce any security interest created by the 'Corporate Debtor' in respect of its property etc., which reads as follows: "14. Moratorium. ─ (1) Subject to provisions of subsections (2) and (3), on the insolvency commencement date, the Adj....

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....obligation and includes mortgage, charge, hypothecation, assignment and encumbrance or any other agreement or arrangement securing payment or performance of any obligation of any person: Provided that security interest shall not include a performance guarantee" 6. From sub-section (31) of Section 3, it is clear that the 'security interest' do not include the 'Performance Bank Guarantee....