# In the matter of NTCIL Infrastructure Private Limited

> NCLT judgment dated 2023-10-17. Citation: TCN-2023-NCLT-01184. IFCI Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-NCLT-01184
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ntcil-infrastructure-private-limited-d6fa67be

## Summary

### Background

IFCI Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against NTCIL Infrastructure Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) as the corporate guarantor for loans disbursed to EMC Limited (the principal borrower). EMC Limited is already undergoing CIRP. IFCI had sanctioned and disbursed Rs. 300 crore to EMC, with Rs. 200 crore guaranteed by NTCIL under a deed of corporate guarantee dated 18/06/2015. EMC defaulted, leading IFCI to invoke the guarantee on 03/01/2019. The amount claimed to be in default is Rs. 307,67,14,888.68 as of 15/12/2022, with the date of default being 15/06/2018.

## Facts

IFCI Limited (Financial Creditor) sought to initiate Corporate Insolvency Resolution Process (CIRP) against NTCIL Infrastructure Private Limited (Corporate Debtor), acting as the corporate guarantor for loans sanctioned to EMC Limited (Principal Borrower). IFCI had sanctioned Rs. 300 crore to EMC, with Rs. 200 crore guaranteed by NTCIL under a deed dated 18/06/2015. EMC defaulted, leading IFCI to invoke the guarantee on 03/01/2019. The default amount was Rs. 307,67,14,888.68 as of 15/12/2022, with the date of default being 15/06/2018. EMC is already undergoing CIRP. The Corporate Debtor's authorized and paid-up capital is Rs. 1,00,000. The Financial Creditor claims that the Corporate Guarantee dated 18/06/2015 was furnished by the Corporate Debtor securing Loan II

…

## Issues and analysis

### Issue 1: Whether the CIR Process can simultaneously be initiated against the Corporate Guarantor when the …

**Ratio:** The liability of the surety is co-extensive with that of the principal debtor, as per

…

**Reasoning:** The court relied on several judicial precedents, including Laxmi Pat Surana v. Union Bank

…

**Interpretation:** Section 60(2) of the I&B Code allows for applications relating to the

…

**Application:** In this case, the court found that the claim against the Principal Borrower and

…

## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** IFCI Li…
- **Respondents:** NTCIL Infrastructu…

## Timeline

- **2014-08-27 — Incorporation of…**: The Corporate Debtor, NTCIL…
- **2014-07-25 — Sanction of…**: EMC Limited (Principal Borrower) approached IFCI Limited for sanction of Loan I,…

## 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)

---

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-division-bench-court-i-chenn/ntcil-infrastructure-private-limited-d6fa67be