# Jammu And Kashmir Bank Limited vs. Essel Infraprojects Limited

> NCLT judgment dated 2026-08-24. Citation: TCN-2026-NCLT-00884. Jammu And Kashmir Bank Limited (Financial Creditor) filed a Section 7 IBC petition against…

- **Court:** NCLT
- **Order date:** 24 Aug 2026
- **Citation:** TCN-2026-NCLT-00884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/ts-party-jammu-and-kashmir-bank-limited-vs-essel-infraprojects-limited-6cik8

## Summary

### Background

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

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## Facts

Jammu And Kashmir Bank Limited (Financial Creditor/Petitioner) filed a petition under Section 7 of the IBC, 2016, against Essel Infraprojects Limited (Corporate Debtor/Respondent) to initiate CIRP.

The default amount claimed is Rs. 87,43,17,925.37/-, with the date of default being 29.10.2019.

The NCLT initially admitted the Respondent into CIRP on 28.08.2024.

A suspended director, Pooja Ramesh Singh, appealed to NCLAT (dismissed on 11.09.2025) and then to the Supreme Court.

The Supreme Court, by order dated 02.07.2026, set aside both the NCLT and NCLAT orders and remanded the matter to the NCLT for fresh consideration.

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## Issues and analysis

### Issue 1: Whether in the facts and circumstances of the case, the Respondent has liability in terms of the …

**Ratio:** The Corporate Debtor remains liable under the Deed of Guarantee dated 27.12.2013, as the

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**Reasoning:** The Corporate Guarantee explicitly states it is independent of other securities (Clause

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**Interpretation:** The terms of a corporate guarantee are paramount in determining the guarantor's

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**Application:** The NCLT applied the specific clauses of the Corporate Guarantee (2, 4, 8, 9,

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## Parties

- **Judges:** Vinay…; Charanjeet Singh…
- **Appellants:** Jammu And Kashmir…
- **Respondents:** Essel Infraproject…
- **Other parties:** Hemant J.…; Pooja Rames…; +1 more
- **Advocates:** Devarajan…; Adv Rohit…; +6 more

## Timeline

- **2013-12-17 — Loan San…**: Petitioner provided Line of Credit Facility (SOD) of Rs. 200 Crores to PIUDCL via…
- **2013-12-27 — Guarantee and Mortgage…**: Respondent executed a Corporate Guarantee and a Deed of Mortgage over Gorai Land in…

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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-mumbai/ts-party-jammu-and-kashmir-bank-limited-vs-essel-infraprojects-limited-6cik8