# In the matter of Liberty House Group PTE Ltd Vs State Bank of India CS (Comm) 1246-2018 and IAs No. 16056-2018 and 16060-2018 AND CS (Comm) 1247-2018 and IAs No.16061-2018 and 16065-2018

> HC judgment dated 2019-02-22. Citation: TCN-2019-HC-00019. Liberty House Group PTE LTD filed two suits, CS(COMM) 1246/2018 and CS(COMM) 1247/2018, against…

- **Court:** HC
- **Order date:** 22 Feb 2019
- **Citation:** TCN-2019-HC-00019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/liberty-house-group-pte-ltd-vs-state-bank-of-india-cs-3b227deb

## Summary

### Background

Liberty House Group PTE LTD filed two suits, CS(COMM) 1246/2018 and CS(COMM) 1247/2018, against State Bank of India (SBI) & ORS, seeking interim injunctions restraining the encashment of Bank Guarantees (BGs). The suits arose from the Corporate Insolvency Resolution Process (CIRP) of Castex Technologies Limited and ARGL Limited, where Liberty House was a resolution applicant. The plaintiff sought to prevent SBI from invoking and Barclays Bank PLC from remitting funds under a Bid Bond Guarantee (BBG) and a Performance Bank Guarantee (PBG). The suits also challenged the jurisdiction of the Delhi High Court, with SBI arguing that the NCLT had exclusive jurisdiction over matters related to the CIRP under the Insolvency and Bankruptcy Code (IBC).

## Facts

Liberty House Group PTE LTD participated as a resolution applicant in the Corporate Insolvency Resolution Process (CIRP) of Castex Technologies Limited and ARGL Limited. As part of the process, Liberty House furnished Bid Bond Guarantees (BBGs) and was expected to furnish Performance Bank Guarantees (PBGs). The State Bank of India (SBI) initiated the CIRP for Castex Technologies Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) prepared a Process Memorandum for the selection of resolution plans. Liberty House submitted a resolution plan that was initially accepted by the Committee of Creditors (CoC). A Letter of Intent (LoI) was issued to Liberty House, requiring them to submit a PBG. Liberty House offered to convert

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## Issues and analysis

### Issue 1: Whether the Delhi High Court has jurisdiction to entertain suits seeking to restrain the invocation …

**Ratio:** Sections 60, 63, 231, and 238 of the Insolvency and Bankruptcy Code (IBC) delineate the

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**Reasoning:** The court reasoned that the bank guarantees were furnished as part of the CIRP of Castex

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**Interpretation:** The court interpreted Sections 60, 63, 231, and 238 of the IBC to mean that the

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**Application:** The court applied the provisions of the IBC to the facts of the case,

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## Parties

- **Judges:** RAJIV SAHAI…
- **Appellants:** Liberty House…
- **Respondents:** Castex Technologie…; State Bank of…

## Timeline

- **2017-07-24 — Section 14…**: Section 14 order was made in relation…
- **2017-08-31 — Expression of…**: RP issued Expression of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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