Jammu And Kashmir Bank Limited (Financial Creditor) filed a Section 7 IBC petition against Essel Infraprojects Limited (Corporate Debtor/Guarantor) for a default of Rs. 87.43 Crores. The Corporate Debtor had provided a corporate guarantee for a Line of Credit facility extended to Pan India Utilities Distribution Company Limited (PIUDCL). The Gorai Land, initially mortgaged by the Corporate Debtor, was subsequently transferred to Essel Urban and then to PIIPL through schemes of demerger and amalgamation. The NCLT initially admitted the petition, but the Supreme Court remanded the matter for fresh consideration. The Corporate Debtor argued that its guarantee liability was discharged due to novation, variance in contract terms, and the transfer of the mortgaged asset, and

Jammu And Kashmir Bank Limited (Financial Creditor) filed a Section 7 IBC petition against Essel Infraprojects Limited (Corporate Debtor/Guarantor) for a default of Rs. 87.43 Crores. The Corporate Debtor had provided a corporate guarantee for a Line of Credit facility extended to Pan India Utilities Distribution Company Limited (PIUDCL). The Gorai Land, initially mortgaged by the Corporate Debtor, was subsequently transferred to Essel Urban and then to PIIPL through schemes of demerger and amalgamation. The NCLT initially admitted the petition, but the Supreme Court remanded the matter for fresh consideration. The Corporate Debtor argued that its guarantee liability was discharged due to novation, variance in contract terms, and the transfer of the mortgaged asset, and