# In the matter of EPC Constructions India Limited MA-417-2018 in CP(IB)1832-MB-MAH-2017

> NCLT judgment dated 2020-09-24. Citation: TCN-2020-NCLT-00532. The case involves MA-417/2018 filed in CP(IB)1832/MB/MAH/2017 by EPC Construction India…

- **Court:** NCLT
- **Order date:** 24 Sept 2020
- **Citation:** TCN-2020-NCLT-00532
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/epc-constructions-india-limited-ma-417-2018-in-cpib1832-mb-mah-2017-a7f5db5e

## Summary

### Background

The case involves MA-417/2018 filed in CP(IB)1832/MB/MAH/2017 by EPC Construction India Limited. The order is being pronounced pursuant to directions given by the Bombay High Court in Writ Petition (OS-WP-LD-VC-251-2020) dated 24.08.2020, directing the bench to pronounce the order within four weeks. The MA-417/2018 was heard de novo after reconstitution of the bench. The core issue revolves around the invocation of a 'Performance Bank Guarantee' and its relation to Section 14 of the Insolvency and Bankruptcy Code (IBC).

## Facts

EPC Construction India Limited filed MA-417/2018. NLC India Limited and Axis Bank Limited are the respondents. The Bombay High Court directed the NCLT to pronounce an order within four weeks following a writ petition. The core issue is whether NLC India Limited can invoke a 'Performance Bank Guarantee'. The I&B Petition moved by the Financial Creditor has already been admitted, CIRP has commenced, the Resolution Professional has taken over the charge of the Corporate Debtor, and the Resolution Plan is also approved. The applicant sought relief that the court determined falls outside the purview of Section 14 of the Insolvency and Bankruptcy Code. The court considered precedents related to bank guarantees and their invocation.

## Issues and analysis

### Issue 1: Whether the relief sought in MA-417/2018 falls within the purview of Section 14 of the Insolvency …

**Ratio:** The ratio is based on the principle that a bank guarantee is an independent contract

…

**Reasoning:** The court reasoned that the invocation of a bank guarantee is a contractual right and

…

**Interpretation:** The interpretation is that Section 14 of the IBC does not extend to prevent the

…

**Application:** The court applied this ratio to the facts by stating that the relief sought,

…

## Parties

- **Judges:** Harihar Prakash…; Ravikumar…; +1 more
- **Respondents:** EPC Construction…; EPC Constructions…; +1 more

## Timeline

- **2020-08-24 — Bombay High Co…**: Bombay High Court directs NCLT to pronounce order in MA-417/2018 within four weeks in…
- **2020-09-24 — NCLT Ord…**: NCLT pronounces order in MA-417/2018, rejecting…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/epc-constructions-india-limited-ma-417-2018-in-cpib1832-mb-mah-2017-a7f5db5e