L & T Finance Limited v. Divyesh Desai, Resolution Professional of Rajesh Estates and Nirman Private Limited (NCLT Mumbai)
M/s L&T Finance Limited challenged the Resolution Professional’s rejection of its claim of ₹209,96,04,196 in the CIRP of Rajesh Estates and Nirman Private Limited.
L&T had sanctioned a ₹212 crore term loan to Odeon Constructions and Developers Private Limited on 24.12.2021. The Corporate Debtor executed a Corporate Guarantee dated 31.01.2022 and subsequently a registered Deed of Mortgage dated 15.07.2022 in favour of Catalyst Trusteeship Limited, acting for L&T. The Corporate Debtor entered CIRP on 24.03.2023. Following dismissal of an appeal against the admission order on 21.12.2023, L&T submitted its claim in Form C on 13.02.2024.
The RP initially admitted the claim on 23.04.2024, subject to stated conditions, but rejected it three days later on the ground that the Corporate Guarantee had not been invoked before commencement of CIRP. The RP relied principally on Ghanashyam Mishra and Sons Private Limited versus Edelweiss Asset Reconstruction Company Limited and IDBI Trusteeship Services Limited vs. Abhinav Mukherji & Ors.
L&T contended that the guarantee obligation was absolute, there had been no default by the principal borrower before CIRP, and the Event of Default arose upon commencement of CIRP. It also argued that the RP lacked authority to reverse an already admitted claim.
