The appeal was filed by Bank of Maharashtra under Section 61 of the Insolvency & Bankruptcy Code, 2016, challenging an order dated 20.04.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench). The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application under Section 7 of the IBC filed by Bank of Maharashtra, State Bank of India, and Vijaya Bank (now Bank of Baroda). A Resolution Plan for Fabtech Projects and Engineers Ltd. was submitted jointly by Manjeet Cotton Pvt. Ltd. and Parason Machinery (India) Pvt. Ltd., approved by the Committee of Creditors (CoC) with 85.18% voting share, and approved by the Adjudicating Authority on 16.11.2021.
The Bank of Maharashtra, along with State Bank of India and Vijaya Bank, initiated Corporate Insolvency Resolution Process (CIRP) against Fabtech Projects and Engineers Ltd. A resolution plan was submitted by Manjeet Cotton Pvt. Ltd. and Parason Machinery (India) Pvt. Ltd. (Successful Resolution Applicants). The resolution plan was approved by the Committee of Creditors (CoC) with a voting share of 85.18% and subsequently by the Adjudicating Authority. The appellant, Bank of Maharashtra, invoked bank guarantees after the CoC approval but before the Adjudicating Authority's approval. The Successful Resolution Applicant (SRA) refused to pay the invoked amount, claiming the invocation occurred before the 'Transfer Date'. The Bank of Maharashtra filed an application
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Order passed by the Adjudicating Authority…
Corporate Ins…
The appeal was filed by Bank of Maharashtra under Section 61 of the Insolvency & Bankruptcy Code, 2016, challenging an order dated 20.04.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench). The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application under Section 7 of the IBC filed by Bank of Maharashtra, State Bank of India, and Vijaya Bank (now Bank of Baroda). A Resolution Plan for Fabtech Projects and Engineers Ltd. was submitted jointly by Manjeet Cotton Pvt. Ltd. and Parason Machinery (India) Pvt. Ltd., approved by the Committee of Creditors (CoC) with 85.18% voting share, and approved by the Adjudicating Authority on 16.11.2021.
The Bank of Maharashtra, along with State Bank of India and Vijaya Bank, initiated Corporate Insolvency Resolution Process (CIRP) against Fabtech Projects and Engineers Ltd. A resolution plan was submitted by Manjeet Cotton Pvt. Ltd. and Parason Machinery (India) Pvt. Ltd. (Successful Resolution Applicants). The resolution plan was approved by the Committee of Creditors (CoC) with a voting share of 85.18% and subsequently by the Adjudicating Authority. The appellant, Bank of Maharashtra, invoked bank guarantees after the CoC approval but before the Adjudicating Authority's approval. The Successful Resolution Applicant (SRA) refused to pay the invoked amount, claiming the invocation occurred before the 'Transfer Date'. The Bank of Maharashtra filed an application
…Order passed by the Adjudicating Authority…
Corporate Ins…