# In the matter of C & C Construction Ltd. Vs. Power Grid Corporation of India Ltd. CA (AT) (Ins) No. 781 of 2019 & other IAs

> NCLAT judgment dated 2021-07-19. Citation: TCN-2021-NCLAT-00171. The appeal was filed against the order dated 22.07.2019 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 19 Jul 2021
- **Citation:** TCN-2021-NCLAT-00171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/c-c-construction-ltd-vs-power-grid-corporation-of-india-ltd-ca-a41defce

## Summary

### Background

The appeal was filed against the order dated 22.07.2019 passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench New Delhi, in C.A No. 1248/2019 in C.P No. (IB) 1367(PB)/2018. The Resolution Professional (RP) is aggrieved by the Adjudicating Authority order which vacated an ‘ad-interim' injunction previously granted against the encashment of a bank guarantee issued on behalf of the Appellant to its various customers, including the Respondent. Axis Bank Ltd. filed an Interlocutory Application seeking clarifications/directions regarding the encashment of the bank guarantee issued on behalf of the joint venture of the Corporate Debtor. The Ministry of External Affairs (MEA) also filed an IA seeking a direction to Axis Bank Limited to release

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## Facts

C & C Construction Ltd. is undergoing Corporate Insolvency Resolution Process (CIRP). Navneet Kumar Gupta is the Resolution Professional (RP). Power Grid Corporation of India Ltd. is a respondent and a GoI Enterprise. The RP filed an appeal against the Adjudicating Authority's order vacating an interim injunction against the encashment of a bank guarantee. Axis Bank Ltd. filed an IA seeking clarification regarding the encashment of the bank guarantee issued on behalf of the joint venture of the Corporate Debtor. The Ministry of External Affairs (MEA) also filed an IA seeking a direction to Axis Bank Limited to release the amount payable towards the encashment of the bank guarantee. The Corporate Debtor and the Respondent entered into four contracts/agreements. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order vacating the interim injunction against the encashment …

**Ratio:** The court has the power to interfere in the encashment of bank guarantees in the presence

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**Reasoning:** The court considered the submissions of the parties and the relevant provisions of the

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**Interpretation:** The court interpreted the law regarding the encashment of bank guarantees and

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Jarat Kuma…; Ashok Kumar…
- **Appellants:** C & C Construction…
- **Respondents:** C&C Construction…; Power Grid…
- **Advocates:** Siddhartha…; PulkitD…; +7 more

## Timeline

- **2019-07-22 — Order by Adjudicating…**: Order passed by the 'Adjudicating Authority' (National Company Law Tribunal), Principal…
- **2019-02-14 — Initiation…**: CIRP of the Corporate Debtor initiated vide order dated 14.02.2019 in CP (IB)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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