Two appeals were filed by Amit Bhatnagar and Sumit Bhatnagar, personal guarantors of M/s Diamond Power Transformers Ltd. (Corporate Debtor) and Diamond Power Infrastructure Ltd. (Corporate Guarantor), against an NCLT order dated 23.10.2024. The NCLT had admitted applications under Section 95 of the IBC, filed by Consortium Banks (UCO Bank and Indian Overseas Bank), seeking initiation of insolvency resolution against the personal guarantors for a default amount of Rs. 122.19 Crores. The appellants contended that the debt was extinguished due to the approved Resolution Plan of the Corporate Guarantor (DPIL) and that the claims were barred by limitation.
Amit Bhatnagar and Sumit Bhatnagar are Personal Guarantors of M/s Diamond Power Transformers Ltd. (DPTL).
Diamond Power Infrastructure Ltd. (DPIL) is the Corporate Guarantor to DPTL.
Consortium Banks (UCO Bank and Indian Overseas Bank) extended a credit facility of Rs. 40 crores to DPTL on 15.10.2011, which was renewed on 29.06.2013.
A Consortium Agreement dated 31.03.2015 was executed for an aggregate credit facility of Rs. 114.60 crores.
The Appellants executed a Deed of Guarantee dated 31.03.2015 in favour of the Consortium Banks.
The Appellants contended that the Consortium Banks failed to disburse Rs. 24 crores, which constituted a material alteration and discharged them under Section 133 of the Indian Contract Act, 1872.
DPTL's account was declared NPA on 30.07.2016.
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Consortium Banks extended a credit facility…
The credit fac…
Two appeals were filed by Amit Bhatnagar and Sumit Bhatnagar, personal guarantors of M/s Diamond Power Transformers Ltd. (Corporate Debtor) and Diamond Power Infrastructure Ltd. (Corporate Guarantor), against an NCLT order dated 23.10.2024. The NCLT had admitted applications under Section 95 of the IBC, filed by Consortium Banks (UCO Bank and Indian Overseas Bank), seeking initiation of insolvency resolution against the personal guarantors for a default amount of Rs. 122.19 Crores. The appellants contended that the debt was extinguished due to the approved Resolution Plan of the Corporate Guarantor (DPIL) and that the claims were barred by limitation.
Amit Bhatnagar and Sumit Bhatnagar are Personal Guarantors of M/s Diamond Power Transformers Ltd. (DPTL).
Diamond Power Infrastructure Ltd. (DPIL) is the Corporate Guarantor to DPTL.
Consortium Banks (UCO Bank and Indian Overseas Bank) extended a credit facility of Rs. 40 crores to DPTL on 15.10.2011, which was renewed on 29.06.2013.
A Consortium Agreement dated 31.03.2015 was executed for an aggregate credit facility of Rs. 114.60 crores.
The Appellants executed a Deed of Guarantee dated 31.03.2015 in favour of the Consortium Banks.
The Appellants contended that the Consortium Banks failed to disburse Rs. 24 crores, which constituted a material alteration and discharged them under Section 133 of the Indian Contract Act, 1872.
DPTL's account was declared NPA on 30.07.2016.
…Consortium Banks extended a credit facility…
The credit fac…