# In the matter of Sunil Hitech Engineers Limited

> NCLT judgment dated 2024-02-29. Citation: TCN-2024-NCLT-02313. The case involves an application filed by Macawber Beekay Private Limited, the Applicant,…

- **Court:** NCLT
- **Order date:** 29 Feb 2024
- **Citation:** TCN-2024-NCLT-02313
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sunil-hitech-engineers-limited-07368d24

## Summary

### Background

The case involves an application filed by Macawber Beekay Private Limited, the Applicant, against the invocation of bank guarantees by the Resolution Professional of Sunil Hitech Engineers Limited, the Corporate Debtor. The Applicant claims the Resolution Professional invoked the bank guarantees without providing any reasons. The Applicant seeks a declaration that the invocation of the bank guarantees is illegal and an injunction against the Respondent from acting upon the letters related to the bank guarantees or receiving monies in respect of them. The Applicant had also filed a claim in Form C, which was rejected by the Liquidator, leading to a separate Miscellaneous Application (MA No. 3388 of 2019).

## Facts

Macawber Beekay Private Limited (Applicant) filed an application against Sunil Hitech Engineers Limited (Corporate Debtor) concerning the invocation of bank guarantees. The Resolution Professional of Sunil Hitech Engineers Limited invoked the bank guarantees. The Applicant claimed the invocation was without reason and sought a declaration that it was illegal, along with an injunction against encashment. The Applicant had also filed a claim in Form C, which was rejected by the Liquidator on 2019-10-15, leading to MA No. 3388 of 2019. The bank guarantees in question included Guarantee No. 2010/66 (reduced to Rs. 28,58,846), Guarantee No. 2010/343 (reduced to Rs. 10,72,672), and Guarantees No. 2010/168 and 2010/167 (reduced to Rs. 4,27,73,989 and Rs. 20,00,000

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## Issues and analysis

### Issue 1: Whether the invocation of the Bank Guarantees by the Resolution Professional was legal and …

**Ratio:** A Bank Guarantee is a contract between the issuing Bank and the Respondent (beneficiary),

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**Reasoning:** The court considered that the Applicant had fulfilled more than 90% of its obligations

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**Interpretation:** The interpretation of the law is that while a bank guarantee is a separate

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**Application:** The court applied this principle to the facts by noting that the Applicant had

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Macawber Beekay…
- **Respondents:** Sunil Hitech…
- **Advocates:** Gaurav…; Kunal Vai…; +4 more

## Timeline

- **2018-01-01 — CP(IB) No. 2295 of 2018…**: CP(IB) No. 2295 of 2018…
- **2019-10-15 — Rejection of Claim in…**: The Liquidator rejected the…

## 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)

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