TaxTMI 
TaxTMI 
2026 (9) TMI 1673
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....olvency and Bankruptcy Code, 2016 (hereinafter referred to as "IBC") before the National Company Law Tribunal (hereinafter referred to as "NCLT"), Guwahati Bench on the allegation of default of a sum of Rs. 333,58,76,382/- being CP (IB) No. 08/GB/2024 on the basis of two loan agreements dated 24th January, 2019, entered between the petitioner no.1 and the respondent no. 2 and its parent company, SREI Infrastructure Finance Limited (hereinafter referred to as "SIFL") and other documents. 3. During pendency of the insolvency petition, the respondent no. 2 has filed an application before this Court under Section 9 of the Arbitration and Conciliation Act, 1996, praying for an injunction over the assets and properties of the petitioner no.1 on the basis of the loan agreements dated 24th January, 2019. The Court has passed an order of injunction over some of immovable properties of the petitioners and equity share in the petitioners company. 4. Subsequently, in an application filed by SEFL under Section 11 of the Arbitration and Conciliation Act, 1996, the Court has appointed an Arbitrator to adjudicate upon the dispute between the parties. In the meantime by an order dated 17th De....
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....ed the request of the petitioners to defer the further proceeding against the petitioners pursuant to the show cause notice until conclusion of arbitral proceeding. He submits that the SEFL threatened the petitioners that if the petitioners will not file reply to the show cause notice within 21 days from the date of receipt of the notice dated 19th August, 2026, the SEFL will proceed with the matter and declare the petitioners as wilful defaulters. 10. Mr. Ranjan Bachawat, Learned Senior Advocate, representing the respondent no. 2 submits that the writ petition filed by the petitioners is not maintainable. He submits that the Identification Committee of the SEFL has issued the show case notice to the petitioners by providing 21 days to the petitioners to submit their reply but instead of submitting reply, the petitioners have filed the present writ petition. He submits that at first the petitioners have taken chance by filing an application before the Learned Sole Arbitrator under Section 17 of the Arbitration and Conciliation Act and when the Learned Sole Arbitrator refused to grant any interim order to the petitioners, the petitioners have filed the present writ petition. 1....
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....tioner no. 1 and in the said proceeding also the agreements and the loan amount sanctioned in favour of the petitioners was involved. Learned Tribunal has disposed of the said proceeding on 2nd June, 2026, by passing the following order: "77. Thereafter, on 17.09.2025 in APCOM/ 741/2025, the Hon'ble Calcutta High Court observed the following: "With the above observations, this application is allowed by appointing Justice Indra Prasanna Mukerji, former Chief Justice of the Meghalaya High Court as the sole arbitrator, to arbitrate upon the dispute between the parties" 78. Thus, this Tribunal notes that a Sole Arbitrator has already been appointed to adjudicate the disputes inter se arising out of the Loan Agreement dated 24.01.2019 relating to Contract Nos. 1268, and 177125, which also form the basis of the present Section 7 proceedings. This Tribunal further takes note that, in the proceedings under Section 9 of the Arbitration and Conciliation Act, 1996 being A.P. (Com) No. 489 of 2025, SEFL itself has sought protection and recovery measures in respect of the alleged outstanding dues arising from the same transactions, including injunctions concerning....
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.... Bankruptcy Code, 2016." 17. After issuance of the impugned Show Cause Notice to the petitioners by the SEFL, the petitioners have also filed an application before the Learned Sole Arbitrator challenging the Show Cause Notice and prayed for interim order. Learned Sole Arbitrator in a proceeding dated 13th July, 2026, passed the following order: "4. In agreement with the submission of Mr. Ranjan Bachawat, learned Senior advocate appearing for the claimant, I say that this proceeding for declaring the borrower as a wilful defaulter has its source in statute and Reserve Bank of India guidelines. It is substantially independent of the dispute which is the subject matter of the arbitration before this tribunal, which in short, is whether the respondent has any debt due and owing payable to the claimant. Secondly, any adjudication of this show-cause notice would not be confined to the parties herein but would have effect on third parties and on transactions both present and future which are not the subject matter of this arbitration. Hence, this arbitral tribunal does not have jurisdiction to deal with the show-cause and the proceedings commencing from it 5. But an a....
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....oticed: (A) the borrower has the capacity to honour the said obligations; (B) the borrower has diverted the funds availed under the credit facility from lender; (C) the borrower has siphoned off the funds availed under the credit facility from lender; (D) the borrower has disposed of immovable or movable assets provided for the purpose of securing the credit facility without the approval of the lender; (E) The borrower or the promoter has failed in its commitment to the lender to infuse equity despite having the ability to infuse the equity, although the lender has provided loans or certain concessions to the borrower based on this commitment and other covenants and conditions. (ii) by a guarantor shall be deemed to have occurred if the guarantor does not honour the guarantee when Invoked by the lender, despite having sufficient means to make payment of the dues or has disposed of immovable or movable assets provided for the purpose of securing the credit facility, without the approval of the lender or has failed in commitment to the lender to infuse equity despite having the ability to infuse the equity, although the lender has....