NCLAT : In V. R. Hemantraj vs. Stanbic Bank Ghana Ltd. & Anr.

Adjudicating Authority has made prima facie case and expressed its final satisfaction about existence of debt and default, CIRP process could not be challenged as illegal and void raising untenable grounds.

The appellant has filed this appeal on grounds of:

(i) The 1st respondent do not come within the meaning of ‘financial creditor’ as defined under Section 5(7) r/w Section 5(8) of the I&B Code; and

(ii) In absence of document of debt or default, the application preferred by the 1st respondent, was not maintainable.

The subsidiary of the Corporate Debtor, was granted medium term loan by 1st Respondent. It is also not in dispute that Corporate Debtor which is the holding company has executed a guarantee in favour of the 1st Respondent. The guarantee given by the Corporate debtor, is on record. The decree passed by the High Court is an evidence in support of such guarantee. As admittedly the debt amount has not been paid by the Corporate Debtor, the Adjudicating Authority rightly admitted the application.

Link : https://nclat.nic.in/Useradmin/upload/9088956645b890f1d070f9.pdf