# In the matter of Wadhwa Glass Processors Private Limited

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-01025. TUF Metallurgical Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-01025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/wadhwa-glass-processors-private-limited-f842b41b

## Summary

### Background

TUF Metallurgical Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Wadhwa Glass Processors Private Limited, alleging default in repayment of debt.

## Facts

TUF Metallurgical Private Limited filed a petition to initiate CIRP against Wadhwa Glass Processors Private Limited.

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The alleged default was in repayment of a debt of Rs. 1,31,66,125/- as on 04.02.2019.

The debt was related to a Share Pledge Agreement dated 04.04.2017 and a Corporate Guarantee dated 31.08.2017.

Wadhwa Glass Processors Private Limited was a guarantor to the principal borrower, Albus India Private Limited.

The Financial Creditor recalled the loan via a loan recall notice dated 28.05.2018.

The Adjudicating Authority previously dismissed the application on the ground of non-maintainability.

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## Issues and analysis

### Issue 1: Whether the document relied upon by the Petitioner constitutes a Corporate Guarantee as defined …

**Ratio:** The document annexed as Annexure A-8 to the petition, which the Petitioner claims to be a

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**Reasoning:** The document's sole purpose is to deposit title deeds as collateral security for the loan

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**Interpretation:** The document merely creates a security interest and does not constitute a

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**Application:** The Adjudicating Authority concluded that the document was merely a mortgage

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; ATUL CHAT…
- **Appellants:** TUF Metallurgical…
- **Respondents:** Wadhwa Glass…
- **Advocates:** Bishwajit…; Radhika Bishwajit…; +4 more

## Timeline

- **04.04.2017 — Share Pledge A…**: Share Pledge Agreement…
- **31.08.2017 — Corporate Gu…**: Corporate Guarantee…

## 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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