# In the matter of Swati Udyog Private Limited I.A. (IB) No. 616-KB-2021 in C.P. (IB) No. 956-KB-2018

> NCLT judgment dated 2021-08-12. Citation: TCN-2021-NCLT-01360. This case involves an application (I.A. (IB) No. 616/KB/2021) filed in an ongoing corporate…

- **Court:** NCLT
- **Order date:** 12 Aug 2021
- **Citation:** TCN-2021-NCLT-01360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swati-udyog-private-limited-ia-ib-no-616-kb-2021-in-cp-ib-no-956-kb-2018-f0cfe523

## Summary

### Background

This case involves an application (I.A. (IB) No. 616/KB/2021) filed in an ongoing corporate insolvency resolution process (CIRP) under C.P. (IB) No. 956/KB/2018. The application was filed by the Resolution Professional (RP) of Swati Udyog Private Limited, seeking clarification or modification of a previous order dated 2021-06-16, specifically regarding the release of a corporate guarantee provided by Vaishnavi Metal and Power Private Limited, a wholly-owned subsidiary of the Corporate Debtor. The applicant contends that the release of this guarantee is crucial for the successful implementation of the Resolution Plan.

## Facts

Swati Udyog Private Limited is undergoing CIRP. Vaishnavi Metal and Power Private Limited, a wholly-owned subsidiary of Swati Udyog, provided a corporate guarantee to the Financial Creditors of Swati Udyog. This guarantee is secured by a property owned by Vaishnavi Metal and Power Private Limited, which is leased to Swati Udyog. The Resolution Applicant sought the release of this corporate guarantee as part of the Resolution Plan. The CoC initially agreed to the release, but Respondent No. 3 later objected. The Resolution Plan was approved by the Adjudicating Authority, but the order lacked clarity regarding the release of the guarantee. The Resolution Applicant then filed an application seeking clarification or modification of the order to ensure the release of the

…

## Issues and analysis

### Issue 1: Whether the Resolution Professional has the locus standi to seek the release of a corporate …

**Ratio:** The Resolution Applicant has the locus to maintain the present application because the

…

**Reasoning:** The court reasoned that the Resolution Applicant has the right to seek the release of the

…

**Interpretation:** This confirms that the Resolution Professional, as the implementer of the

…

**Application:** The Resolution Professional's application is deemed valid because it directly

…

## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** MANISH…
- **Respondents:** Swati Udyog…; State Bank of…

## Timeline

- **2010-02-01 — Lease De…**: Vaishnavi Metal and Power Private Limited leased property to the Corporate Debtor for 41…
- **2010-02-24 — Registered Le…**: Lease Deed reg…

## 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/swati-udyog-private-limited-ia-ib-no-616-kb-2021-in-cp-ib-no-956-kb-2018-f0cfe523