# In the matter of Export Import Bank of India Vs. Resolution Professional JEKPL Pvt. Ltd. CA (AT) Nos. 16-2018; 302 & 304-2017

> NCLAT judgment dated 2018-08-14. Citation: TCN-2018-NCLAT-00147. The case involves three appeals related to Corporate Insolvency Resolution Processes (CIRP).…

- **Court:** NCLAT
- **Order date:** 14 Aug 2018
- **Citation:** TCN-2018-NCLAT-00147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/export-import-bank-of-india-vs-resolution-professional-jekpl-pvt-ltd-ca-16f2c853

## Summary

### Background

The case involves three appeals related to Corporate Insolvency Resolution Processes (CIRP). Two appeals were filed by Export Import Bank of India (EXIM Bank) concerning CIRP initiated against JEKPL Private Limited. The third appeal was filed by Axis Bank Limited regarding CIRP against Edu Smart Services Private Limited. The core legal question is common to all three appeals, leading to a joint hearing and judgment.

## Facts

Export Import Bank of India (EXIM Bank) had disbursed a Dollar Loan of US$ 50 Million to Jubilant Energy N.V. (JENV), a Netherlands-based company. This loan was secured by a 'Corporate Guarantee' from Jubilant Enpro Private Limited (JEPL) and a 'Counter Corporate Guarantee' from JEKPL Private Limited. EXIM Bank declared the loan as NPA on 17.05.2016 and invoked the 'Counter Corporate Guarantee' on 30.03.2017. The Resolution Professional rejected EXIM Bank's claim to be a 'Financial Creditor' in the CIRP of JEKPL.

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## Issues and analysis

### Issue 1: Whether the EXIM Bank, which has been provided with ‘Counter Corporate Guarantee' by JEKPL …

**Ratio:** A 'Counter-Indemnity Obligation' in respect of a guarantee falls within the scope of

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**Reasoning:** The NCLAT reasoned that JEKPL had provided a 'Counter-Indemnity Obligation' by way of a

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**Interpretation:** Section 5(8)(h) includes any counter-indemnity obligation in respect of a

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**Application:** The court applied the ratio to the facts, noting that JEKPL provided the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Export Import…; Export-Import…
- **Respondents:** JEKPL Private…; Resolution…

## Timeline

- **2017-11-27 — Order by Adjudicating…**: The Adjudicating Authority rejected the claim of EXIM Bank in CA No. 159/2017 in CP…
- **2017-12-15 — Order by Adjudicating…**: Order passed in CA No. 223/2017 in CP No.24/ALD/2017 in violation of the order passed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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