In re Essel Infraprojects Limited (NCLT Mumbai)
Summary: Jammu And Kashmir Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Essel Infraprojects Limited, seeking initiation of Corporate Insolvency Resolution Process in respect of a claimed default of Rs. 87,43,17,925.37/-. The underlying facility had been granted to Pan India Utilities Distribution Company Limited (PIUDCL), with Essel Infraprojects providing a Corporate Guarantee dated 27.12.2013 and a mortgage over land at Gorai, Mumbai.
The Tribunal had originally admitted the Corporate Debtor into CIRP on 28.08.2024. The suspended director challenged that order before the NCLAT, which dismissed the appeal on 11.09.2025. The matter was thereafter carried to the Supreme Court, which, by order dated 02.07.2026, set aside the NCLT and NCLAT orders and remanded the matter for fresh consideration.
The Respondent did not dispute execution of the Corporate Guarantee and Deed of Mortgage. Its principal defence was that the Gorai Land had been transferred pursuant to a demerger Scheme sanctioned by the Bombay High Court on 04.04.2014 and subsequently transferred to Pan India Infraprojects Private Limited (PIIPL) pursuant to a merger Scheme sanctioned on 20.06.2014. The Respondent argued that the Petitioner’s 2017 Renewal-cum-Reduction Letter, requiring PIIPL to re-execute the mortgage and furnish a fresh guarantee, demonstrated that PIIPL had replaced the Respondent as guarantor and mortgagor.
