Ind Barath Power Infra Ltd Vs India Infrastructure Finance Co. Ltd (NCLT Hyderabad)
NCLT Hyderabad held that dismissed the application of corporate debtors as provisions of rule 43 of the NCLT Rules empowers the Adjudicating Authority, and not to the corporate debtors, to seek production of documents.
Facts- The applicant-Corporate Debtor preferred the present appeal for seeking direction to Financial Creditor to produce, for verification of Hon’ble Tribunal, original copy of the Corporate Guarantee dated 20.05.2015 stated to have been executed and tendered/ submitted/ furnished to the Financial Creditors.
Conclusion- Thus, it is clear from the above provision that for the purpose of satisfying itself as to the truth of the allegations made in the petition or application before passing the order, if the Adjudicating Authority require the parties to produce such further documentary or other evidence as it may consider necessary, the Adjudicating Authority may pass a direction to produce the document, as such a direction to produce a document at the behest of the opposite party is neither contemplated nor be given at the behest of the party under this Rule.
FULL TEXT OF THE NCLT HYDERABAD ORDER
The applicant herein/ Corporate Debtor has filed this application, inter alia, praying that:
“(a) Pass an order directing the Financial Creditor/ respondent to produce for verification of this Hon’ble Tribunal the original copy of the corporate guarantee dated 20.05.2015 stated to have been executed and tendered/ submitted/ furnished to the Financial creditor.”
2. Averments made in the IA are such that:
(i) Financial Creditor has claimed that the Corporate Debtor executed Deed of Corporate Guarantee in favour of the Power Finance being security agent on 20.05.2015. In spite of such claim the Corporate Guarantor has never furnished the said Corporate Guarantee to the Financial Creditor.
(ii) Since the Financial Creditor relies on and invokes the said Corporate Guarantee, in para 1 of Part-IV of the Company Petition and the said copy of the said Corporate Guarantee dated 20.05.2015 is annexed to the Company Petition as Annexure-A8, it has become necessary for the Corporate Debtor to seek the said Corporate Guarantee to bring the truth on record.
3. Reply dated 01.12.2021 is filed by the Financial Creditor contending that:
(i) While adjudicating a petition under section 7 of the I&B Code, 2016, this Tribunal is concerned with existence of debt and default and completeness of the application. To place reliance on any other irrelevant details for admission of the Company Petition under section 7 of the I&B Code is in contravention of the established principles of the Code. In this regard the Financial Creditor relied on the following decisions:
