Performance Bank Guarantees not protected by Section 14 moratorium; funds can aid corporate debtor's operations.

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Full Text of the Document

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....Invocation and encashment of Performance Bank Guarantee(s) (PBG) granted by the Appellant - surety in a contract of guarantee to a ‘Corporate Debtor’ - A Performance Bank Guarantee does not enjoy the benefits of a moratorium under Section 14 of the Code. - the amount may be utilised for the functioning of the ‘Corporate Debtor’ as a Going Concern. - AT....