2019 (9) TMI 1657

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....nce Communications Infrastructure Limited (hereinafter called the 'Corporate Debtor') on the ground, that the Corporate Debtor committed default to the extent of Rs. 3730,40,67,023/- including interest, as a guarantor of the loan facilities sanctioned by the Petitioner to M/s Reliance Communications Limited (RCOM), Reliance Telecom Limited (RTL) and Reliance Infratel Limited (RITL)(hereinafter called "Principal Debtors"), under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereafter called the 'Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The petition reveals that on 27.12.2014 vide letter ref no. PFSBU/ASP/3066, the Petitioner sanctioned the following facilities to t....

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....ee, upon failure by RCOM to duly discharge its obligations, all or any of the Guarantors as required by the Security Trustee, shall immediately on demand and in no event later than 3 days thereof, and without any delay, demur or protest, pay the amount demanded by the Security Trustee, as stated in the Demand Certificate, without the right of any set off and/or deductions and/or adjustments of any kind whatsoever, in accordance with Clause 5 and the terms hereof, as if each were a principal obligor. 6. The Corporate Debtor herein along with RITL and RTL executed a Corporate Guarantee Deed on 19.01.2017 in favour of Axis Trustee Services Limited (ATSL), security trustee of the secured parties i.e. the Petitioner, for a sum of Rs. 1200 crore....

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....te Debtor and proof of service was filed to that effect. The matter was listed on 30.08.2019, 05.09.2019 and on 11.09.2019 before this Bench. On 05.09.2019, one Ms. Suchitra Maharana, legal officer of the Corporate Debtor appeared before this Bench and time was granted to file reply by the Corporate Debtor and the matter was listed on 11.09.2019 for final hearing. On 11.09.2019, there was no representation from the Corporate Debtor's side and they also choose not to file reply to the petition. 13. The above facts clearly reveals that the Corporate Debtor is liable to make the payment as guarantor but defaulted in making the payment to the Financial Creditors. 14. This Adjudicating Authority, on perusal of the documents filed by the Credit....