Oriental Bank Of Commerce vs Shekhar Resorts Ltd. And Ors

Ch. Mohd. Sharief Tariq, J

CA-254 of 2019/-

Counsel for Resolution Professional is present. Counsel for the State Bank of India is present. It is submitted by the Counsel for Resolution Professional that the bank guarantees in question were invoked and the State Bank of India has filed the claim before the Resolution Professional. The Resolution Professional has already admitted the claim of the State Bank of India in relation the Corporate Debtor Viz., Shekhar Resorts Ltd. The COC has already approved the Resolution Plan whereby 100% of the claim will be paid to State Bank of India. The Resolution Plan is before the Adjudicating Authority for consideration.

As per the submissions of the counsel for the RP the margin money in the forms of fixed deposits lying with the State Bank of India to the tune of Rs. 2,69,46,600 plus interest is stated to be part and parcel of the asset of the Corporate Debtor and needs to be released in the favour of the CD for meeting the expenses of CIRP.

The counsel for State Bank of India submitted that the bank guarantees have not been invoked but the counsel for the Resolution Professional had rebutted this argument stating that the letter issued on 29th March 2019 makes the things clear and State Bank of India is aware that the bank guarantee share already been invoked. The Counsel for State Bank of India in this submission referred to Section 52 of the Code stating that his client must have some protection as Financial Creditor who is holding this money as security. But in this case on hand the COC has approved the Resolution Plan, so there is no question of exercising the option by State of State Bank of India under Section 52 of the Code as suggested.

In case the argument of the counsel for the State Bank of India are assumed as correct i.e., the Bank guarantees have not been invoked, then the State Bank of India on 6th of February 2019 could not have filed the claim before the Resolution Professional which includes the amount involved in the bank guarantees.

In the circumstances, the interest of State Bank of India has already been taken care of by the COC while approving the Resolution Plan as 100% claim of the State Bank of India has been admitted and proposed to be paid by the Resolution Applicant as per the Resolution Plan. Therefore, the arguments of the Counsel for the State Bank of India have no force, the submissions are rejected.

The application of the Resolution Professional is allowed. The SBI is directed to make the payment of Rs. 2,69,46,600/- along with further interest within a period of 10 days to the CD from the date of passing of this order and to file an affidavit of compliance with the Registry. A dasti of this order will be provided by the court officer with his/her signature to the counsel for the SBI for compliance.

Accordingly, the CA stands disposed off.