UV Asset Reconstruction Company Limited appealed against the NCLAT's decision, which upheld the NCLT's rejection of their application under Section 7 of the IBC. The core issue revolves around interpreting Clause 2.2 of a Deed of Undertaking to determine if it constitutes a contract of guarantee.
SREI Infrastructure Finance Limited (SREI) was the original creditor.
UV Asset Reconstruction Company Limited is the appellant, having acquired rights from SREI.
Electrosteel Steels Limited (ESL) is the borrower.
Electrosteel Castings Limited (ECL) is the erstwhile promoter of ESL and obligor in the Deed of Undertaking.
ESL availed financial assistance of INR 500 crores from SREI pursuant to a sanction letter dated 26.07.2011.
The sanction letter only stipulated a demand promissory note and post-dated cheques as security.
ECL executed a Deed of Undertaking, warranty, and indemnity dated 27.07.2011, undertaking a limited obligation to arrange for infusion of funds into ESL.
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SREI issued a sanction…
ECL executed a…
UV Asset Reconstruction Company Limited appealed against the NCLAT's decision, which upheld the NCLT's rejection of their application under Section 7 of the IBC. The core issue revolves around interpreting Clause 2.2 of a Deed of Undertaking to determine if it constitutes a contract of guarantee.
SREI Infrastructure Finance Limited (SREI) was the original creditor.
UV Asset Reconstruction Company Limited is the appellant, having acquired rights from SREI.
Electrosteel Steels Limited (ESL) is the borrower.
Electrosteel Castings Limited (ECL) is the erstwhile promoter of ESL and obligor in the Deed of Undertaking.
ESL availed financial assistance of INR 500 crores from SREI pursuant to a sanction letter dated 26.07.2011.
The sanction letter only stipulated a demand promissory note and post-dated cheques as security.
ECL executed a Deed of Undertaking, warranty, and indemnity dated 27.07.2011, undertaking a limited obligation to arrange for infusion of funds into ESL.
…SREI issued a sanction…
ECL executed a…