Central Bank of India filed an application claiming to be a financial creditor of Jaypee Infratech Limited (JIL). The Resolution Professional rejected the claim, stating that the mortgage created in favor of the bank did not qualify as a 'Financial Debt' under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, because the credit facilities were sanctioned to JIL's holding company, Jaiprakash Associates Ltd (JAL), not directly to JIL. The bank argued that JIL mortgaged its property to secure loans granted by the bank to JAL, making JIL a surety/guarantor. The bank sought a declaration that it is a financial creditor of JIL.
Central Bank of India (the Applicant) claimed to be a financial creditor of Jaypee Infratech Limited (JIL, the Corporate Debtor). The Applicant's claim was based on a mortgage created by JIL in favor of the Applicant to secure loans granted by the Applicant to Jaiprakash Associates Ltd (JAL), the holding company of JIL. The Resolution Professional rejected the Applicant's claim, arguing that the debt was not a 'Financial Debt' under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, because the credit facilities were sanctioned to JAL, not JIL. The Applicant argued that JIL acted as a surety/guarantor for the loans granted to JAL. The Applicant filed a company application seeking a declaration that it is a financial creditor of JIL. A similar application
…Sign in to view the parties.
Power of Attorney dated 09.01.2017 executed in…
Power of Attorney dated…
Central Bank of India filed an application claiming to be a financial creditor of Jaypee Infratech Limited (JIL). The Resolution Professional rejected the claim, stating that the mortgage created in favor of the bank did not qualify as a 'Financial Debt' under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, because the credit facilities were sanctioned to JIL's holding company, Jaiprakash Associates Ltd (JAL), not directly to JIL. The bank argued that JIL mortgaged its property to secure loans granted by the bank to JAL, making JIL a surety/guarantor. The bank sought a declaration that it is a financial creditor of JIL.
Central Bank of India (the Applicant) claimed to be a financial creditor of Jaypee Infratech Limited (JIL, the Corporate Debtor). The Applicant's claim was based on a mortgage created by JIL in favor of the Applicant to secure loans granted by the Applicant to Jaiprakash Associates Ltd (JAL), the holding company of JIL. The Resolution Professional rejected the Applicant's claim, arguing that the debt was not a 'Financial Debt' under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, because the credit facilities were sanctioned to JAL, not JIL. The Applicant argued that JIL acted as a surety/guarantor for the loans granted to JAL. The Applicant filed a company application seeking a declaration that it is a financial creditor of JIL. A similar application
…Power of Attorney dated 09.01.2017 executed in…
Power of Attorney dated…