- (1.) This is an application filed by Union Bank of India/ corporate guarantor allegedly issued bank guarantee to the tune of Rs.2,73,00,000/- in favour of the National Small Industries Corporation Ltd. at the request of the corporate debtor. According to the petitioner, the petitioner also sanctioned various credit facilities in the form of cash credit term loan in addition to the issuance of bank guarantee in favour of National Small Industries Corporation Ltd. to the corporate debtor herein. The applicant had executed various documents according to their liability including creating security interest in favour of the applicant as a repayment of said dues.
(2.) The petitioner further alleges that because the corporate debtor failed to repay the loan amount, the loan account became irregular and classified as NPA as on 31/5/2017 and issued demand notice.
(3.) The petitionerfiled this application praying for impleading the petitioner as a party to the proceedings initiated by the operational creditor under Sec.9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as I & B Code) and to hear the petitioner regarding the bank guarantee issued to the National Small Industries Corporation Ltd. and to issue such other reliefs which may deem fit and proper. The operational creditor M/s. Berger Paints India Ltd. has filed the instant company petition under Sec.9 of the I & B Code for initiating corporate insolvency process as against the corporate debtor viz. Precision Engineers & Fabricating Pvt. Ltd. The petition was also admitted by this Tribunal by its order dated 4/4/2017 requiring a moratorium for the purpose of referring to under Sec.13 and 14 of the I & B Code. IRP has been appointed in pursuance of the above referred order. The appointment of IRP has been confirmed by the Committee of Creditors and IRP thereafter re-appointed as RP. Therefore, the present status of the insolvency resolution process is in progress.;