# In the matter of Ardor Global Pvt. Ltd. C.P. No. 33-9-NCLT-AHM-2017

> NCLT judgment dated 2017-07-31. Citation: TCN-2017-NCLT-00682. The case involves an application filed by Renish Petrochem FZE (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 31 Jul 2017
- **Citation:** TCN-2017-NCLT-00682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ardor-global-pvt-ltd-cp-no-33-9-nclt-ahm-2017-daa5abb1

## Summary

### Background

The case involves an application filed by Renish Petrochem FZE (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Ardor Global Private Limited (Corporate Debtor). The Operational Creditor claimed that it had supplied various materials to Ardor International Limited, and an outstanding amount of Rs. 15,35,40,909.49 was due. The payment was guaranteed by Ardor Global Private Limited through a Deed of Guarantee dated 1st September, 2014. The Applicant issued a notice dated 15th November, 2016, to the Respondent, who acknowledged the claim and requested time to clear the dues. The Applicant then issued a notice as required by Rule 5 of the Adjudicating Rules, and subsequently filed the petition on 31st May, 2017.

## Facts

Renish Petrochem FZE (Operational Creditor) supplied materials to Ardor International Limited, with an outstanding amount of Rs. 15,35,40,909.49. Ardor Global Private Limited (Corporate Debtor) guaranteed the payment through a Deed of Guarantee dated 2014-09-01. The Operational Creditor issued a notice on 2016-11-15, to which the Corporate Debtor acknowledged the claim and requested time to clear the dues. The High Court of Gujarat had ordered liquidation proceedings for Ardor International Ltd. The Registered Offices of Ardor International Limited and Ardor Global Private Limited are situated in one premises. The Central Bank of India filed a Caveat Application and claimed to be a Financial Creditor, arguing that the Operational Creditor cannot initiate insolvency

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## Issues and analysis

### Issue 1: Whether the Operational Creditor can initiate Insolvency Resolution Process against the guarantor …

**Ratio:** The liability of the Principal Borrower and that of the Guarantor is co-extensive, as per

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**Reasoning:** The Adjudicating Authority considered the arguments presented by the learned Counsel for

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**Interpretation:** The interpretation of the Contract Act and the Supreme Court's decision

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**Application:** In this case, Ardor Global Private Limited acted as a guarantor for the debt of

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Renish Petrochem…
- **Respondents:** Ardor Global…; Ardor Global Pvt.…

## Timeline

- **2014-09-01 — Deed of Gua…**: Deed of Guarantee executed between…
- **2016-11-15 — Notice I…**: Applicant issued notice…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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