# In the matter of Worlds Window Estate Private Limited

> NCLT judgment dated 2024-05-30. Citation: TCN-2024-NCLT-01275. The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 May 2024
- **Citation:** TCN-2024-NCLT-01275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/worlds-window-estate-private-limited-7108a5f6

## Summary

### Background

The State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Worlds Window Estate Private Limited, the Corporate Debtor, which acted as a corporate guarantor for loans availed by M/s Magnifico Minerals Private Limited (Borrower). The Borrower had sought fund-based and non-fund-based facilities from the State Bank of Patiala, which later merged with the applicant (SBI). The amount of default was Rs. 71,18,05,053.27 as of 30.04.2023. The Corporate Debtor was incorporated on 19.01.2006. The petition was filed on 26.05.2023.

## Facts

M/s State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Worlds Window Estate Private Limited (Corporate Debtor). The Corporate Debtor acted as a corporate guarantor for loans availed by M/s Magnifico Minerals Private Limited (Borrower). The Borrower sought fund-based and non-fund-based facilities from State Bank of Patiala, which later merged with SBI. The amount of default was Rs. 71,18,05,053.27 as of 30.04.2023. The Corporate Debtor was incorporated on 19.01.2006. The petition was filed on 26.05.2023. The Borrower was declared as NPA on 25.05.2019. The Financial Creditor invoked the Guarantee against the Corporate Debtor on 16.12.2019. The

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## Issues and analysis

### Issue 1: Whether there is a debt which …

**Ratio:** The obligation of a Corporate Guarantor is co-extensive and co-terminus with that of the

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**Reasoning:** The Adjudicating Authority relied on the documents submitted by the Applicant, including

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**Interpretation:** This issue concerns the fundamental requirement for initiating CIRP under

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**Application:** The ratio and reasoning were applied to the facts by examining the loan

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** M/s. State Bank…
- **Respondents:** M/s WORLDS WINDOW…

## Timeline

- **2006-01-19 — Incorporation of…**: Worlds Window Estate Private…
- **2019-01-01 — Freezing of Bank…**: Some consortium members arbitrarily froze the debit operations in the bank accounts of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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