Gokul Aggarwal Vs Bank of India (NCLAT Delhi)
In , the appeal before the National Company Law Appellate Tribunal challenged the order dated 21.02.2024 passed by the National Company Law Tribunal Mumbai allowing liquidation proceedings against Chamber Constructions Private Limited and dismissing an application seeking stay of related proceedings.
The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated on 16.07.2019 pursuant to a Section 7 application filed by Bank of Baroda. The Corporate Debtor had furnished a corporate guarantee for loans advanced to RNA Corp Pvt. Ltd., the principal borrower and holding company of the Corporate Debtor. Bank of India filed claims in the CIRP of the Corporate Debtor for more than Rs.81.58 crore, which were admitted by the Resolution Professional. Separately, Bank of India also initiated CIRP against RNA Corp under Section 7, and the principal borrower was admitted into CIRP on 26.11.2019.
The Appellant, a promoter and member of the suspended board of RNA Corp, had earlier challenged the CIRP against RNA Corp before the NCLAT and later before the Supreme Court of India. Before the Supreme Court, the Appellant argued that parallel CIRP proceedings for the same debt against both the principal borrower and corporate guarantor were not maintainable. The Supreme Court initially granted status quo orders.
