The National Small Industries Corporation Limited (NSIC) filed an appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC), 2016, against an order dated 25.08.2021 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Court – IV) in I.A. No.3139/ND/2020 in C.P. (IB) No. – 364(ND)/2019. The dispute arose from the invocation of bank guarantees by NSIC, which provided raw material financial assistance to M/s. Ganesh Fire Equipments Private Limited (Corporate Debtor). The Resolution Professional filed an application contending that the invocation of bank guarantees violated the moratorium provisions under Section 14(1)(c) of the IBC. The Adjudicating Authority quashed the notices issued by NSIC regarding the invocation of bank
…The National Small Industries Corporation Limited (NSIC) provided raw material financial assistance to M/s. Ganesh Fire Equipments Private Limited (Corporate Debtor) under a scheme where the Corporate Debtor furnished bank guarantees. Initially, the financial assistance was Rs. 1 Crore, later increased to Rs. 2.99 Crores through a supplementary agreement dated 05.10.2018. Seven bank guarantees were submitted to NSIC. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) following an application by an Operational Creditor. NSIC invoked the bank guarantees on 14.02.2020. The Resolution Professional filed I.A. No.3139/ND/2020, arguing that the invocation violated Section 14(1)(c) of the IBC, which imposes a moratorium. The Adjudicating
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M/s. Ganesh Fire Equipments Private Limited…
A supplementary agreement was executed,…
The National Small Industries Corporation Limited (NSIC) filed an appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC), 2016, against an order dated 25.08.2021 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Court – IV) in I.A. No.3139/ND/2020 in C.P. (IB) No. – 364(ND)/2019. The dispute arose from the invocation of bank guarantees by NSIC, which provided raw material financial assistance to M/s. Ganesh Fire Equipments Private Limited (Corporate Debtor). The Resolution Professional filed an application contending that the invocation of bank guarantees violated the moratorium provisions under Section 14(1)(c) of the IBC. The Adjudicating Authority quashed the notices issued by NSIC regarding the invocation of bank
…The National Small Industries Corporation Limited (NSIC) provided raw material financial assistance to M/s. Ganesh Fire Equipments Private Limited (Corporate Debtor) under a scheme where the Corporate Debtor furnished bank guarantees. Initially, the financial assistance was Rs. 1 Crore, later increased to Rs. 2.99 Crores through a supplementary agreement dated 05.10.2018. Seven bank guarantees were submitted to NSIC. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) following an application by an Operational Creditor. NSIC invoked the bank guarantees on 14.02.2020. The Resolution Professional filed I.A. No.3139/ND/2020, arguing that the invocation violated Section 14(1)(c) of the IBC, which imposes a moratorium. The Adjudicating
…M/s. Ganesh Fire Equipments Private Limited…
A supplementary agreement was executed,…