A bank guarantee amounting to Rs. 3 Crores was issued to the Corporate Debtor. The Adjudicating Authority allowed the invocation of the bank guarantee. The Appellant (Punjab National Bank) filed an appeal against this order, arguing that the invocation would adversely affect the Financial Creditor's claim under Section 53 of the IBC and put an additional financial burden on them. The Respondent (West Bengal State Electricity Distribution Company Ltd.) had filed a claim in the CIRP. The IRP had sent an email on 22.12.2022 stating that if any amount is recovered by invoking the bank guarantee, the claim should be revised. The key fact is the invocation of the bank guarantee and its potential impact on the CIRP process and the claims of financial creditors.

A bank guarantee amounting to Rs. 3 Crores was issued to the Corporate Debtor. The Adjudicating Authority allowed the invocation of the bank guarantee. The Appellant (Punjab National Bank) filed an appeal against this order, arguing that the invocation would adversely affect the Financial Creditor's claim under Section 53 of the IBC and put an additional financial burden on them. The Respondent (West Bengal State Electricity Distribution Company Ltd.) had filed a claim in the CIRP. The IRP had sent an email on 22.12.2022 stating that if any amount is recovered by invoking the bank guarantee, the claim should be revised. The key fact is the invocation of the bank guarantee and its potential impact on the CIRP process and the claims of financial creditors.