Allowed

In the matter of Aristo Texcon Private Limited [I.a. (Ib) No. 460-KB-2023 in Company Petition (Ib) No. 570-KB-2018]

NCLT24 Apr 2024I.A. (IB) No. 460-KB-2023 in Company Petition (IB) No. 570-KB-2018

Case brief

AI extract

What is this about?

The Tribunal allowed an interim application seeking to modify an earlier order to clarify that the right to proceed against guarantors in other forums shall not be obstructed, correcting an omission.

What did the court decide?

Modification of the order dated 19.12.2022 to clarify the right to proceed against guarantors.

What the court decided

In the matter of Aristo Texcon Private Limited [I.a… — Insolvency and Bankruptcy | NCLT (2024)

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IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH, COURT NO. II KOLKATA

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I.A. (IB) No. 460/KB/2023

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Company Petition (IB) No. 570/KB/2018

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An Application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, for brevity “I&B Code” read with Rule 11 of National Company Tribunal Rules, 2016.

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IN THE MATTER OF:

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ARISTRO TEXCON PRIVATE LIMITED

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… Corporate Debtor.

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And

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IN THE MATTER OF:

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M/s. Jagannath Financial Advisory Private Limited

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… Applicant.

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Versus

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Canara Bank and Ors.

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… Respondents.

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And

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IN THE MATTER OF:

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North East Development Finance Corporation Ltd. (NEDFI)

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… Applicant.

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Versus

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M/s. Jagannath Financial Advisory Private Limited

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… Respondent.

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Date of Pronouncement: April 24, 2024.

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CORAM:

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SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL) SHRI. D. ARVIND, HON’BLE MEMBER (TECHNICAL)

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IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH, COURT NO. II KOLKATA

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I.A. (IB) No. 460/KB/2023

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In Company Petition (IB) No. 570/KB/2018

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Appearance:

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For NEDFI: Mr. Debasish Chakraborty, Adv. and Mr. Shehasish Charkraborty, Adv.

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For the Respondent: Mr. Rishav Banerjee, Adv. and Ms. M. Senapati, Adv.

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ORDER

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Per: D. Arvind, member (Technical):

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1. The Court congregated through a hybrid mode.

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2. This is an application preferred by North East Development Finance Corporation (Hereinafter referred to as “Applicant”) against Financial Advisory Pvt Ltd (hereinafter referred to as “Respondent”), seeking the following relief:

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a. Clarify/ Modify the Order dated 19.12.2022 in IA No. 261 of 2022 arising out of CP No. 517 of 2018 to the extent that instead of observing that “ right to pursue the matter will not be obstructing in any manner ”, may be directed that “ right to proceeds against the guarantors in any other forum shall not be obstructed in any manner ”.

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3. We have noted that in I.A. (IB) NO. 261/KB/2022 , we passed an order as under:

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a) Ld. Counsel appearing for R-3 and Ld. Senior Counsel appearing for R-4 submits that they have sought instructions from their clients and the clients have no reservation to make

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Page 2 of 4

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IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH, COURT NO. II KOLKATA

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I.A. (IB) No. 460/KB/2023 In Company Petition (IB) No. 570/KB/2018

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their accounts “Standard” as prayed for in this IA, provided that right to pursue the matter is not obstructed in any manner.

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b) Ld. Counsel for the Applicant further request that consequently action for updating the records maintained by CRILIC and CIBIL will be affected. We order accordingly.

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c) With the above directions IA(IBC)/261(KB)2022 is allowed and disposed of.

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4. We find that there is an omission, to include the word “guarantors” in our order and accordingly, we modify our earlier order dated 19^th December 2022 as under.

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i. In Para (a) of the order dated 19.12.2022, shall be read as: “Learned counsel appearing for R-3 and Ld. Senior Counsel appearing for R-4 submits that they have sought instructions from their clients and the clients have no reservation to make their accounts “Standard” as prayed for in this IA, provided right to proceeds against the guarantors in any other forum shall not be obstructed in any manner . ”

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ii. Consequent to this addition previous words appearing after the word “provided” stands deleted.

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iii. The rest of the order shall stand unchanged. This modification/correction order be read along with the Order dated 19.12.2022.

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Page 3 of 4

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IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH, COURT NO. II KOLKATA

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I.A. (IB) No. 460/KB/2023 In

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Company Petition (IB) No. 570/KB/2018

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5. Accordingly, this application being I.A. (IB) No. 460/KB/2023, is allowed and disposed of.

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6. Certified copies of this order, if applied for with the Registry of this Adjudicating Authority, be supplied to the parties for compliance with all requisite formalities.

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D. Arvind Member (Technical)

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Bidisha Banerjee Member (Judicial)

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This order is signed on the 24th Day of April, 2024.

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Bose, R. K. [LRA]

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Page 4 of 4

In the matter of Aristo Texcon Private Limited [I.a. (Ib) No. 460-KB-2023 in Company Petition (Ib) No. 570-KB-2018]

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In the matter of Aristo Texcon Private Limited [I.a. (Ib) No. 460-KB-2023 in Company Petition (Ib) No. 570-KB-2018]

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