# In the matter of Viceroy Bangalore Hotels Pvt. Ltd.

> NCLT judgment dated 2025-04-09. Citation: TCN-2025-NCLT-00219. The case involves two Interlocutory Applications (IAs), IA (IBC)/1806/2023 and IA…

- **Court:** NCLT
- **Order date:** 9 Apr 2025
- **Citation:** TCN-2025-NCLT-00219
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/viceroy-bangalore-hotels-pvt-ltd-cf54b4ea

## Summary

### Background

The case involves two Interlocutory Applications (IAs), IA (IBC)/1806/2023 and IA (IBC)/440/2023, filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Viceroy Bangalore Hotels Private Limited (Corporate Debtor/CD). The CIRP was initiated following the CD's failure to comply with the terms of a Master Restructuring Agreement (MSA) related to a loan obtained from a consortium of banks. Edelweiss Asset Reconstruction Company Limited (Applicant/Financial Creditor/FC) filed the applications seeking reliefs related to bank guarantees (BGs) issued under the Export Promotion Capital Goods Scheme (EPCG) and the appropriation of fixed deposits by Kotak Mahindra Bank Ltd. (Respondent No. 1/R1) and the Office of the Deputy Commissioner of

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## Facts

Viceroy Bangalore Hotels Private Limited (Corporate Debtor/CD) obtained a loan from a consortium of four banks, later assigned to Edelweiss Asset Reconstruction Company Limited (Applicant/Financial Creditor). The loan was restructured under a Master Restructuring Agreement (MSA) dated 2017-06-06, but the CD failed to comply with its terms, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) on 2022-08-05. Kuresh Hatim Khambati was appointed as the Resolution Professional (RP). The CD was registered under the Export Promotion Capital Goods Scheme (EPCG) and obtained a license. Kotak Mahindra Bank Ltd. (R1) issued bank guarantees (BGs) in favor of the Deputy Commissioner of Customs (R2). R2 notified the CD about the expiry of the EPCG and

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## Issues and analysis

### Issue 1: Whether the invocation of bank guarantees and appropriation of fixed deposits by the Respondents …

**Ratio:** A Bank Guarantee constitutes an independent and autonomous contract between the issuing

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**Reasoning:** The court reasoned that the bank guarantees were performance guarantees, which are

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**Interpretation:** The interpretation of Section 14 of the IBC, specifically the exclusion of

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Viceroy Bangalore…; Kotak Mahindra…

## Timeline

- **2017-06-06 — Master Restructuring…**: The Corporate Debtor entered into a Master Restructuring Agreement (MSA) with a…
- **2022-08-05 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor…

## 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)

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