# In the matter of Axis Trustee Services Ltd. Vs. Brij Bhushan Singal & Anr.,CS(Comm)-08 of 2021-HCCS(Comm)-20 of 2021

> HC judgment dated 2022-11-04. Citation: TCN-2022-HC-00017. The case involves two commercial suits, CS(COMM) 8/2021 and CS(COMM) 20/2021, filed by Axis Trustee…

- **Court:** HC
- **Order date:** 4 Nov 2022
- **Citation:** TCN-2022-HC-00017
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/axis-trustee-services-ltd-vs-brij-bhushan-singal-anrcs-4eb97f60

## Summary

### Background

The case involves two commercial suits, CS(COMM) 8/2021 and CS(COMM) 20/2021, filed by Axis Trustee Services Limited and Norddeutsche Landesbank Girozentrale, respectively, against Brij Bhushan Singal and another defendant, seeking recovery of amounts due under personal guarantees provided for loans to Bhushan Steel Limited. Bhushan Steel defaulted on its obligations under a Facility Agreement, leading to the invocation of the personal guarantees. Corporate Insolvency Resolution Process (CIRP) was initiated against Bhushan Steel, and a resolution plan was approved. The financial creditors sought to recover the unresolved financial debt from the guarantors. The defendants argued that insolvency proceedings initiated against them trigger an interim moratorium under

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## Facts

Axis Trustee Services Limited and Norddeutsche Landesbank Girozentrale filed commercial suits (CS(COMM) 8/2021 and CS(COMM) 20/2021) against Brij Bhushan Singal and another, seeking recovery of EUR 64,751,108.73 and EUR 44,102,086.02 respectively. These amounts are based on personal guarantees provided by the defendants for loans extended to Bhushan Steel Limited. Bhushan Steel defaulted on its Facility Agreement dated April 14, 2011, leading to the invocation of these guarantees. A Corporate Insolvency Resolution Process (CIRP) was initiated against Bhushan Steel, and a resolution plan was approved on May 15, 2018, which allowed financial creditors to recover unresolved debts from the guarantors. The plaintiffs issued demand notices, but the amounts remained unpaid.

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## Issues and analysis

### Issue 1: Whether the NCLT or the DRT is the appropriate adjudicating authority for insolvency proceedings …

**Ratio:** Section 60 of the IBC, read with relevant Supreme Court and NCLAT judgments, establishes

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**Reasoning:** The court reasoned that Section 60(1) of the IBC provides that the NCLT is the

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**Interpretation:** The court interpreted Section 60 of the IBC to mean that the NCLT has

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**Application:** The court applied this ratio to the present case, concluding that the NCLT is

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## Parties

- **Judges:** AMIT BA…
- **Appellants:** Axis Trustee…
- **Respondents:** Bhushan Steel…; BRIJ BHUSHAN…

## Timeline

- **2011-04-14 — Facility Ag…**: A Facility Agreement was executed between…
- **2011-05-18 — Security Agent…**: Plaintiff was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 96 — Interim- moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-96)

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