Engineering Projects (India) Ltd. (Appellant) awarded a construction contract to D. Thakker Construction Pvt. Ltd. (Corporate Debtor). The Appellant provided bank guarantees, including a Performance Bank Guarantee and a Mobilisation Advance Bank Guarantee. The Corporate Debtor faced financial difficulties and could not complete the project. The Appellant invoked the bank guarantees. Subsequently, CIRP was initiated against the Corporate Debtor, and a moratorium was imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) sought a direction to the Appellant to refund the money equivalent to the bank guarantees invoked. The Adjudicating Authority (NCLT) allowed the RP's application, leading to the present appeal.
Engineering Projects (India) Ltd. (Appellant), a Central Public Sector Enterprise, awarded a construction contract for 105 residential quarters to D. Thakker Construction Pvt. Ltd. (Corporate Debtor) for Rs. 17,32,34,561, with a completion period of 15 months from the Letter of Intent dated 18/05/2016. The Appellant provided a Performance Bank Guarantee (Rs. 15 Lakhs) and a Mobilisation Advance Bank Guarantee (Rs. 19,28,000), both issued by Union Bank of India. The Corporate Debtor requested direct payments to suppliers due to financial constraints. On 11/12/2018, the Corporate Debtor expressed its inability to complete the works. The Appellant invoked the bank guarantees on 26/12/2018 and 25/03/2019. CIRP was initiated against the Corporate Debtor, and a moratorium
…Sign in to view the parties.
Letter of Intent issued to D. Thakker…
Performance Bank Guarantee and Mobilisation…
Engineering Projects (India) Ltd. (Appellant) awarded a construction contract to D. Thakker Construction Pvt. Ltd. (Corporate Debtor). The Appellant provided bank guarantees, including a Performance Bank Guarantee and a Mobilisation Advance Bank Guarantee. The Corporate Debtor faced financial difficulties and could not complete the project. The Appellant invoked the bank guarantees. Subsequently, CIRP was initiated against the Corporate Debtor, and a moratorium was imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC). The Resolution Professional (RP) sought a direction to the Appellant to refund the money equivalent to the bank guarantees invoked. The Adjudicating Authority (NCLT) allowed the RP's application, leading to the present appeal.
Engineering Projects (India) Ltd. (Appellant), a Central Public Sector Enterprise, awarded a construction contract for 105 residential quarters to D. Thakker Construction Pvt. Ltd. (Corporate Debtor) for Rs. 17,32,34,561, with a completion period of 15 months from the Letter of Intent dated 18/05/2016. The Appellant provided a Performance Bank Guarantee (Rs. 15 Lakhs) and a Mobilisation Advance Bank Guarantee (Rs. 19,28,000), both issued by Union Bank of India. The Corporate Debtor requested direct payments to suppliers due to financial constraints. On 11/12/2018, the Corporate Debtor expressed its inability to complete the works. The Appellant invoked the bank guarantees on 26/12/2018 and 25/03/2019. CIRP was initiated against the Corporate Debtor, and a moratorium
…Letter of Intent issued to D. Thakker…
Performance Bank Guarantee and Mobilisation…