A batch of appeals arose from different orders of the NCLAT and NCLT, primarily addressing the maintainability of simultaneous Corporate Insolvency Resolution Process (CIRP) proceedings against a principal debtor and its corporate guarantor, or vice-versa, under the Insolvency and Bankruptcy Code, 2016. Many NCLT/NCLAT orders had rejected such simultaneous applications, relying on the precedent set in Vishnu Kumar Agarwal v. M/s Piramal Enterprises Ltd., which held that once a claim is admitted against one corporate debtor (principal or guarantor), a second application for the same claim against another corporate debtor cannot be admitted. Conversely, some orders allowed simultaneous CIRP, relying on SBI v. Athena Energy Ventures (P) Ltd., which differentiated Vishnu
…ICICI Bank initiated CIRP against ERA Infrastructure (India) Limited as a Financial Creditor, based on loans advanced to group companies for which Era Infra Engineering Private Limited provided guarantees.
ERA Infrastructure (India) Limited defaulted on a sanctioned loan of Rs. 300 crore (later reduced to Rs. 200 crore), leading to its declaration as Non-Performing Asset.
ICICI's claim against Era Infra Engineering Private Limited (guarantor) was admitted in its CIRP, but NCLT rejected ICICI's subsequent Section 7 application against ERA Infrastructure (India) Limited (principal debtor) citing Vishnu Kumar Agarwal.
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CIRP initiated against…
NCLT admitted CIRP…
A batch of appeals arose from different orders of the NCLAT and NCLT, primarily addressing the maintainability of simultaneous Corporate Insolvency Resolution Process (CIRP) proceedings against a principal debtor and its corporate guarantor, or vice-versa, under the Insolvency and Bankruptcy Code, 2016. Many NCLT/NCLAT orders had rejected such simultaneous applications, relying on the precedent set in Vishnu Kumar Agarwal v. M/s Piramal Enterprises Ltd., which held that once a claim is admitted against one corporate debtor (principal or guarantor), a second application for the same claim against another corporate debtor cannot be admitted. Conversely, some orders allowed simultaneous CIRP, relying on SBI v. Athena Energy Ventures (P) Ltd., which differentiated Vishnu
…ICICI Bank initiated CIRP against ERA Infrastructure (India) Limited as a Financial Creditor, based on loans advanced to group companies for which Era Infra Engineering Private Limited provided guarantees.
ERA Infrastructure (India) Limited defaulted on a sanctioned loan of Rs. 300 crore (later reduced to Rs. 200 crore), leading to its declaration as Non-Performing Asset.
ICICI's claim against Era Infra Engineering Private Limited (guarantor) was admitted in its CIRP, but NCLT rejected ICICI's subsequent Section 7 application against ERA Infrastructure (India) Limited (principal debtor) citing Vishnu Kumar Agarwal.
…CIRP initiated against…
NCLT admitted CIRP…