Case Law Details
Iskon Infra Engineering Pvt. Ltd. Vs Central Bank of India (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) in New Delhi ruled on the corporate guarantor’s liability in the case of Iskon Infra Engineering Pvt. Ltd. vs. Central Bank of India. This appeal contested the National Company Law Tribunal (NCLT) New Delhi’s decision, which dismissed the voluntary liquidation application filed by Iskon Infra Engineering Pvt. Ltd.
Background:
Iskon Infra Engineering Pvt. Ltd. initiated voluntary liquidation proceedings under Section 59 of the Insolvency and Bankruptcy Code (IBC), 2016, and reached the stage of Section 59(7). During this process, the liquidator filed a company petition with the NCLT, which then issued notices to the Registrar of Companies (RoC) and to Punjab National Bank (PNB) and Oriental Bank of Commerce (OBC), now merged with PNB, due to the corporate guarantees provided by Iskon Infra.
In response to these notices, the RoC submitted a report highlighting that Iskon Infra had 23 charges against it amounting to approximately Rs. 1257 crores, dating back to 2010, with no evidence of satisfaction of these charges in the MCA-21 records. The Central Bank of India also objected, pointing out that Iskon Infra had provided a corporate guarantee for a term loan and working capital facilities extended to M/s Abhinav Steels and Power Limited by a consortium of banks, including OBC, PNB, and Central Bank of India.
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