The case involves an interim application in a First Appeal challenging a judgment and decree. The appellant sought a declaration that the impugned judgment and decree stood extinguished due to the initiation of Corporate Insolvency Resolution Process (CIRP) against the appellant. The appellant also sought the release of bank guarantees issued in favor of the Registrar of the court as a condition for stay of the judgment. The respondent, who was the original decree holder, had failed to lodge their claim with the Resolution Professional during the CIRP.
Garden Silk Mills Limited (Appellant) faced a decree for Rs. 28,97,629 with interest at 24% per annum. They filed a First Appeal. As a condition for stay of the decree, they furnished bank guarantees. During the pendency of the appeal, Corporate Insolvency Resolution Process (CIRP) was initiated against Garden Silk Mills. The Resolution Professional was appointed, and a resolution plan was approved by NCLT on January 1, 2021, under Section 31 of IBC. Gayatri Industries (Respondent No. 1), the decree holder, failed to lodge its claim with the Resolution Professional. The Appellant then sought the release of the bank guarantees, arguing that the debt was extinguished due to the approved resolution plan. The Respondent argued that the money deposited in court becomes
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The case involves an interim application in a First Appeal challenging a judgment and decree. The appellant sought a declaration that the impugned judgment and decree stood extinguished due to the initiation of Corporate Insolvency Resolution Process (CIRP) against the appellant. The appellant also sought the release of bank guarantees issued in favor of the Registrar of the court as a condition for stay of the judgment. The respondent, who was the original decree holder, had failed to lodge their claim with the Resolution Professional during the CIRP.
Garden Silk Mills Limited (Appellant) faced a decree for Rs. 28,97,629 with interest at 24% per annum. They filed a First Appeal. As a condition for stay of the decree, they furnished bank guarantees. During the pendency of the appeal, Corporate Insolvency Resolution Process (CIRP) was initiated against Garden Silk Mills. The Resolution Professional was appointed, and a resolution plan was approved by NCLT on January 1, 2021, under Section 31 of IBC. Gayatri Industries (Respondent No. 1), the decree holder, failed to lodge its claim with the Resolution Professional. The Appellant then sought the release of the bank guarantees, arguing that the debt was extinguished due to the approved resolution plan. The Respondent argued that the money deposited in court becomes
…The suit was f…
The decree was…