# In the matter of Unimark Remedies Ltd. C.P. (IB)-197-MB-2018

> NCLT judgment dated 2019-05-08. Citation: TCN-2019-NCLT-03387. The case involves an application filed by the Resolution Professional (RP) seeking a direction…

- **Court:** NCLT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLT-03387
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unimark-remedies-ltd-cp-ib-197-mb-2018-9df62f8a

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking a direction against the Bank of Maharashtra for the renewal of three bank guarantees. These guarantees were issued in favor of Gujarat Gas Ltd. for the continued supply of gas to the Corporate Debtor. The Bank of Maharashtra has no objection to the renewal, provided that any invocation of the guarantees is treated as an Insolvency Process cost.

## Facts

The Resolution Professional (RP) filed an application seeking a direction against the Bank of Maharashtra to renew three bank guarantees. These bank guarantees were originally issued in favor of Gujarat Gas Ltd. to ensure the continued supply of gas to the Corporate Debtor. The Bank of Maharashtra expressed no objection to renewing the bank guarantees, but stipulated that any invocation of these guarantees should be treated as an Insolvency Process cost. The Corporate Debtor is obligated to renew these guarantees. The specific amounts and BG numbers of the guarantees are as follows: 1) Gujarat Gas Ltd., INR 8,59,438/-, BG No. 0032716BG0000007; 2) Gujarat Gas Ltd., INR 31,39,500/-, BG No. 0032716BG0000004; 3) Gujarat Gas Ltd., INR 29,03,775/-, BG No. 0032716BG0000032.

## Issues and analysis

### Issue 1: Whether the Bank of Maharashtra should be directed to renew the bank guarantees issued in favor of …

**Ratio:** The principle is that during the Corporate Insolvency Resolution Process (CIRP),

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**Reasoning:** The court considered the submissions from both the RP and the Bank of Maharashtra. The

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**Interpretation:** This issue involves interpreting the powers of the NCLT to ensure the smooth

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**Application:** Given the Bank of Maharashtra's consent to renew the guarantees, the court

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** ICICI Ban…
- **Respondents:** Unimark Remedies…

## Timeline

- **2019-05-08 — Order Da…**: Order sheet of the hearing of Mumbai Bench…
- **2019-05-29 — Next Hearin…**: Matter listed for…

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