Pashupati Facility And Management Service Private Limited Vs Prodot Media Private Limited (NCLT Delhi)
The National Company Law Tribunal (NCLT), Delhi, considered an application filed by Pashupati Facility and Management Service Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Prodot Media Private Limited in its capacity as a corporate guarantor for a financial debt of ₹1,49,99,945. The application stated that the principal borrower, Teriyaki Builders Private Limited, had obtained an inter-corporate deposit of ₹1.35 crore under a Loan Agreement dated 15.12.2022 carrying interest at 8% per annum, repayable within 180 days or on demand. The corporate debtor executed a Deed of Guarantee dated 15.12.2022 and a Deed of Hypothecation dated 23.03.2023 in favour of the financial creditor. The date of default was stated as 29.08.2023.
According to the financial creditor, after expiry of the agreed loan period, the principal borrower failed to repay the loan. CIRP was initiated against the principal borrower by an order dated 29.08.2023, following which the financial creditor filed its claim before the Resolution Professional. The financial creditor subsequently invoked the corporate guarantee through a letter dated 01.04.2024, but received no response from the corporate guarantor. It asserted that the debt constituted a financial debt within the meaning of Sections 3(11) and 5(8)(a) of the Code and relied upon the Loan Agreement, Deed of Guarantee, Deed of Hypothecation, NeSL financial information, invocation letter, claim filed before the Resolution Professional, and calculation of the default amount. It also informed the Tribunal that its claim had been admitted in the CIRP of the principal borrower, where the Committee of Creditors had approved a resolution plan proposing payment of ₹63,42,534 against an admitted claim of ₹1,40,94,521.
