# In the matter of Rajkumar Impex Private Limited CP-670-IB-2017

> NCLT judgment dated 2018-04-27. Citation: TCN-2018-NCLT-01476. The case involves a Company Petition filed by M/s. Stanbic Bank Ghana Limited (Financial…

- **Court:** NCLT
- **Order date:** 27 Apr 2018
- **Citation:** TCN-2018-NCLT-01476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajkumar-impex-private-limited-cp-670-ib-2017-1c8bf007

## Summary

### Background

The case involves a Company Petition filed by M/s. Stanbic Bank Ghana Limited (Financial Creditor) against M/s. Rajkumar Impex Private Limited (Respondent/Guarantor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The dispute arises from loan agreements between the Financial Creditor and M/s. Rajkumar Impex Ghana Limited (Principal Borrower), a wholly-owned subsidiary of the Respondent Company. The loan agreements contain an exclusive jurisdiction clause conferring jurisdiction to the courts of England and Wales. The Respondent is a guarantor to the loan amount by way of a deed of indemnity and guarantee dated 12.04.2012. When the Principal Borrower defaulted, proceedings were initiated in Ghana and before the English Courts. The Financial Creditor

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## Facts

M/s. Stanbic Bank Ghana Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s. Rajkumar Impex Private Limited (Respondent/Guarantor). The Financial Creditor is a bank incorporated in Ghana. The Respondent is a guarantor for a loan taken by M/s. Rajkumar Impex Ghana Limited (Principal Borrower), a wholly-owned subsidiary of the Respondent. The loan agreements, dated 24.02.2012 and 15.04.2014, contain an exclusive jurisdiction clause conferring jurisdiction to the courts of England and Wales. The Respondent entered into a deed of guarantee dated 12.04.2012, making the guarantee an "on demand guarantee." When the Principal Borrower defaulted, proceedings were initiated in Ghana (Suit No. BFS 13/2016

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## Issues and analysis

### Issue 1: Whether the Petitioner/Financial Creditor has made out a prima facie case under IB Code, 2016 for …

**Ratio:** The liability of the guarantor is co-extensive with that of the principal borrower. There

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**Reasoning:** The Tribunal observed that the Hon'ble Judge of the Commercial Court in London had

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**Interpretation:** The decree passed by a foreign court, specifically the Hon'ble High Court of

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**Application:** The Tribunal applied the principle that the liability of the guarantor is

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** M/s.Stanbic Bank…
- **Respondents:** M/s. Rajkumar…

## Timeline

- **2012-04-12 — Deed of Gua…**: The petitioner/financial creditor and the respondent entered into a deed of guarantee…
- **2015-11-20 — Proceedings i…**: Proceedings were initiated in Ghana (Suit No.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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