# In the matter of Reliance Infratel Ltd. IA No. 1960-MB-2019  in CP (IB) No. 1385-MB-2017

> NCLT judgment dated 2021-03-02. Citation: TCN-2021-NCLT-02851. Doha Bank Q.P.S.C., a financial creditor of Reliance Infratel Limited (Corporate Debtor), filed…

- **Court:** NCLT
- **Order date:** 2 Mar 2021
- **Citation:** TCN-2021-NCLT-02851
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliance-infratel-ltd-ia-no-1960-mb-2019-in-cp-ib-no-1385-mb-2017-8c171285

## Summary

### Background

Doha Bank Q.P.S.C., a financial creditor of Reliance Infratel Limited (Corporate Debtor), filed an application to declare certain corporate guarantees as fraudulent and preferential transactions, seeking to set them aside and reconstitute the Committee of Creditors (CoC) by removing Respondent Nos. 2 to 7. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated on 15.05.2018, with Manish Dhirajlal Kaneria appointed as Interim Resolution Professional (IRP). The IRP invited claims from creditors, but certain shareholders challenged the admission order before the NCLAT, which initially stayed the order but later allowed the withdrawal of the appeal, directing the Tribunal to proceed with the matter. The CIRP was resumed, and a fresh public

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## Facts

Doha Bank Q.P.S.C., part of a consortium of banks, extended a USD 250 million loan to Reliance Infratel Limited (RITL) under an agreement dated 19/03/2010. The repayment date was extended multiple times, with USD 199 million outstanding as of 29/05/2019. RITL is a subsidiary of Reliance Communications Limited (RCOM). RCOM and Reliance Telecom Limited (RTL) availed Rupee Loan Facilities from a consortium of banks, including Respondent Nos. 2 to 7. RITL executed Deeds of Guarantee in favor of the consortium lenders, securing the Rupee Loan Facilities granted to RCOM and RTL. RCOM and RTL defaulted on repayments, leading the Security Trustee to invoke the Corporate Guarantees. Doha Bank objected to the invocation, claiming the guarantees breached the facility agreement.

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## Issues and analysis

### Issue 1: Whether the admission of R2 to R7 into the CoC of the Corporate Debtor basing on the Corporate …

**Ratio:** The Code is a self-contained legislation that provides a specific procedure for the

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**Reasoning:** The IRP (R1) did not ensure proper submission of documents before admitting R2 to R7 as

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**Interpretation:** The statutory Forms require that the Creditor must submit its claim with proof,

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**Application:** The IRP's reliance on perusing the Corporate Guarantees in New Delhi cannot be

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Doha Bank Q…
- **Respondents:** Reliance Infratel…; Manish Dhirajlal…

## Timeline

- **2010-03-19 — Loan Agre…**: Doha Bank Q.P.S.C. extended a foreign currency loan of USD 250,000,000 to the Corporate…
- **2016-09-05 — Amendment and…**: The Consortium extended the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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