Case Law Details
Sandeep Kasare Vs IL&FS Financial Services Ltd. (NCLAT Delhi)
NCLAT Delhi held that Financial Creditors can invoke the proceedings under section 7 of the Insolvency and Bankruptcy Code, 2016 against the Guarantor, who on default of Principal Borrower transforms into Corporate Debtor
Facts-
IL&FS offered to extend to Smt. Anupama Agarwal (“the Borrower”) a Rupee Term Loan facility upto Rs.30,00,00,000/-. The Offer Letter itself, while noticing the terms and conditions noticed in “Security Package”, consisting of Primary Security, mortgage by way of deposit of original title deeds over residential premises namely – Flat No.6, Gold Croft, 39, Bahulabhai Desai Road, Mumbai-26 as well as other security. A Letter of Guarantee was issued by the Corporate Debtor, guaranteeing repayment of Rs.30 crores loan in pursuance of Agreement.
The Financial Creditor issued a Demand Notice asking for overdue payment with reference to term loan of Rs.30 crores. Notice was issued both to Principal Borrower as well as Personal Guarantor and Pledgors. By notice dated 31.10.2018 sent to Principal Borrower, Corporate Debtor, Personal Guarantor and Pledgors demand for repayment of overdue sums was made by Respondent No.1.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
