IDBI Bank Limited Vs Zee Entertainment Enterprises Limited (NCLAT Delhi)
NCLAT Delhi held that when the debt invoking the guarantee falls between the 10A period application u/s. 7 of the Insolvency and Bankruptcy Code is barred by limitation. Accordingly, order rejecting application upheld.
Facts- This appeal by IDBI Bank has been filed challenging the order dated 19.05.2023 passed by the adjudicating authority (National Company Law Tribunal, Mumbai Bench, Court – IV), rejecting Section 7 application filed by the appellant as barred by Section 10A of the Insolvency and Bankruptcy Code, 2016. Aggrieved by the order rejecting Section 7 application, this appeal has been filed.
Conclusion- Tribunal in the case of Mudhit Madanlal Gupta’ Vs. ‘Supreme Constructions & Developers Private Limited has held that when the debt invoking the guarantee falls between the 10A period application is barred.
Held that the said notice called upon the corporate debtor and made demand from corporate debtor to pay forthwith to IDBI Bank, sum aggregating to ₹61,97,33,612/-. The above is thus letter of invocation of guarantee which clearly fell between the 10A period. Adjudicating authority thus cannot be said to have committed any error in coming to the conclusion that Section 7 application filed by the corporate debtor is barred by Section 10A.
