Q West Infrastructure Pvt. Ltd Vs Grevek Investments & Finance Pvt. Ltd (NCLT Mumbai)
NCLT Mumbai held that invocation of provisions of section 7 of the Insolvency and Bankruptcy Code against corporate guarantor not maintainable as financial creditor not able to establish invocation of corporate guarantee.
Facts- The Company Petition is filed by M/s Q West Infrastructure Pvt. Ltd. (“Financial Creditor”) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Grevek Investments & Finance Private Limited (“Corporate Debtor”) on 09.03.2024 by invoking the provisions of Section 7 of Insolvency and Bankruptcy Code read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudication Authority) Rules, 2016 for a Resolution of Financial Debt of Rs. 17,90,73,973/- comprising of the principal amount (the ICD Amount) of Rs. 11,00,00,000/- and Rs. 6,90,73,973/- as interest thereon.
Conclusion- The bench thus comes to the conclusion that since the financial creditor has failed to establish that the notice cum invocation dated 01.01.2024 was not sufficiently delivered therefore default on the part of the corporate guarantor does not stand to be established either.
Held that although the existence of debt is established in this case based on the documents and arguments presented, the financial creditor is not able to establish invocation of the corporate guarantee, and consequently, the default on the part of the corporate guarantor also is not established and hence, the bench deems it fit to that the present CP No. 260/MB/2024 be rejected.
