Case Law Details
Central Bank of India Vs Superfine Profile and Extrusions Pvt. Ltd. (NCLT Mumbai)
In a significant legal development, the National Company Law Tribunal (NCLT) in Mumbai rendered a crucial judgment in the case of Central Bank of India vs. Superfine Profile and Extrusions Pvt. Ltd. The core issue under consideration revolves around the determination of the date of default concerning corporate guarantors and its pivotal role in initiating the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
Background of the Petition: Central Bank of India initiated legal proceedings under Section 7 of the IBC, seeking the commencement of the Corporate Insolvency Resolution Process (CIRP) against Superfine Profile and Extrusions Private Limited, the designated corporate debtor. The crux of the matter lies in a Corporate Guarantee Agreement dated 22.08.2015 and 18.11.2016, which served as the legal foundation for credit facilities extended to the principal borrower.
Debt and Default Details: The Financial Creditor, Central Bank of India, asserted a substantial debt amounting to INR 66,21,05,008/-. The identified default date crucial to the proceedings was recorded as 06.03.2023.
Financial Creditor’s Submissions: The Financial Creditor presented a compelling case, highlighting the existence of a Corporate Guarantee Agreement that secured credit facilities for the principal borrower. This agreement was backed by security interests created over movable and immovable properties. Notably, the default was substantiated through a NeSL report, and a demand notice was issued on 06.03.2023.
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