# In the matter of Deserve Exim Private Limited I.A. No. 609 of 2022 in CP (IB) No. 1191-(MB)-2021

> NCLT judgment dated 10 Feb 2023. Citation: TCN-2023-NCLT-04649. The Corporate Debtor filed an application seeking dismissal of the Section 7 petition filed by…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04649
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deserve-exim-private-limited-ia-no-609-of-2022-in-cp-ib-no-1191-mb-2021-3b9c03b8

## Summary

### Background

The Corporate Debtor filed an application seeking dismissal of the Section 7 petition filed by the Financial Creditor, arguing that the default occurred during the period covered by Section 10A of the Insolvency and Bankruptcy Code, 2016, making the petition non-maintainable.

## Facts

YES Bank Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Deserve Exim Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor alleged a default of Rs. 888,94,94,865/-. This amount arose from term loans totaling Rs. 800,00,00,000/- advanced to two original borrowers, Radius & Deserve Builders LLP and Raghuleela Builders Pvt Ltd.

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## Issues and analysis

### Issue 1: Whether the application for initiating CIRP against the Corporate Debtor is barred under Section…

**Ratio:** The liability of a corporate guarantor under an 'on-demand' guarantee crystallizes, and…

**Reasoning:** The NCLT considered that the liability of a corporate guarantor is co-extensive with that…

**Interpretation:** The NCLT interpreted Section 10A of the IBC in conjunction with the terms of an…

**Application:** In this case, the guarantees were invoked on June 26, 2020, and August 7, 2020.…

## Parties

- **Judges:** P.N. Des…
- **Advocates:** NH See…; Gaurav…

## Timeline

- **June 2, 2015 — Execution of Deeds of…**: Corporate Debtor executed two Deeds of Guarantee for loans sanctioned to original…
- **February 1, 2019 — Default by Bo…**: Borrower 2 (Raghuleela Builders Pvt Ltd)…

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