Entity Issuing ‘Letter of Comfort’ cannot be treated as Corporate Debtor or Guarantor under IBC

Shapoorji Pallonji And Company Pvt. Ltd. Vs ASF Insignia SEZ Pvt. Ltd. (NCLT Delhi) NCLT held that Respondent being an entity which issued ‘Letter of Comfort’ cannot be treated as proper Respondent in this matter, more particularly ‘Corporate Debtor/Corporate Guarantor’ within the framework of IBC, 2016. We are of the view also that there is neither any “operational debt” nor the Respondent is a Corporate Guarantor/Corporate Debtor. Therefore, Section 9 application is not maintainable on facts as well as law. FULL TEXT OF THE CESTAT DELHI ORDER 1. We have he...