TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 760
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....r Jain: This appeal is filed by the suspended director of the Corporate Debtor, namely, Essel Infraprojects Ltd. (for short 'EIL') against the order dated 28.08.2024 passed in RCP No. 06/IB/MB-V/2023 connected with CP No. 361/IB/2022 by which an application filed by the Financial Creditor, namely, Jammu and Kashmir Bank Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for short 'Code') against the CD/(EIL) for the resolution of a debt of Rs. 87,43,17,925.37/- inclusive of contractual interest, penal interest, costs and expenses, has been admitted and Hemant J Mehta was appointed as the Interim Resolution Professional (for short 'IRP'). 2. The present appeal came up for preliminary hearing on 13.09.2024. This court whi....
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....d. 7. In reply to the said notice dated 31.01.2019, PIUDCL, vide its reply dated 05.03.2019, admitted the debt and default and requested for further time to repay the same raising the issue of liquidity. 8. The Financial Creditor issued a letter on 29.10.2019 to the Corporate guarantor /CD qua repayment of outstanding loan as per his obligation but no reply was received. 9. The Company Petition No. 543 of 2021 came to be filed by State Bank of India against the CD who had issued corporate guarantee which was admitted into CIRP on 01.03.2023. Subsequently, the present FC filed CP (IB) No. 361/MB/2019 against the same CD but this petition was dismissed on 01.03.2023 because the CD was already facing CIRP in CP (IB) No. 543 of 2021. H....
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.... 12. The Tribunal did not accept the contention of the CD and while referring to the decisions of the Hon'ble Apex Court in the case of State Bank of India Vs. M/s Shree Ram Urban Infrastructure Ltd., 2020 SCC OnLIne SC 341, Everest Kento Cylinders Ltd. Vs. Union of India (2015) 2 SCC 1, ICICI Bank Ltd. Vs. Urban Infrastructure Real Estate Ltd., (2019) 16 SCC 528, V.S Dempo & Co. Ltd. Vs. Reliance Communications Ltd., (2021) 10 SCC 176, Canara Bank Vs. N.G. Subbaraya Setty & Anr., (2018) 16 SCC 228 and Sarbjit Singh Vs. Union Bank of India, (2022) 7 SCC 464 held that the guarantee given by the CD shall still exist and will not be effected where the two orders referred to herein above passed by the Bombay High Court and admitted the petitio....
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....he liability of the CD was transferred, it cannot be pushed into CIRP on account of debt and default. It is also submitted that schemes approved by the Hon'ble Bombay High Court on 04.04.2014 and 20.06.2014 were not challenged and had attained finality. Counsel for the Appellant has further submitted that clause of the renewed sanctioned letter dated 18.11.2017 provides that all other existing terms and conditions remain applicable, would mean that other than the conditions modified by the 2017 sanction letter, the subsisting conditions of the 2013 sanction letter would remain the same. It is further submitted that 2013 sanction letter was replaced by the 2017 sanction letter which is different from the earlier one. 2013 sanction letter was....
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....at in revised sanction which was pertaining to Rs. 130 Cr. it was clearly stipulated that all other existing terms and conditions shall remain applicable which include clause 8 of the earlier guarantee deed. Counsel for the Respondent has also submitted that PIUDCL vide its letter dated 12.12.2017 addressed to FC unequivocally acknowledged the continued subsistence of the Corporate guarantee issued by CD despite intervening scheme of demerger/merger and requested for the release of guarantee given by the CD. It is also submitted that corporate guarantee executed by the CD never stood transferred/discharged under the scheme of demerger and merger because in its letter dated 12.12.2017, three years after the merger, request was made to the Re....