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Judgment
ORDER
C.P. (IB)/260(MB)2024- The above CP is listed for pronouncement of order. The same is pronounced in open Court, vide a separate order.
The present Company Petition has been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC,2016”) by Q West Infrastructure Pvt Ltd (hereinafter referred to as “Financial Creditor”) seeking initiation of Corporate Insolvency Resolution Process against the Grevek Investment and Finance Pvt Ltd (hereinafter referred to as “Corporate Debtor’) in its capacity as Corporate Guarantor.
In the order dated 24.03.2025, this Tribunal had noted the following facts. The Financial Creditor and M/s. Starwort Engineers Pvt. Ltd. (the Principal Borrower) executed an Inter Corporate Deposit Agreement dated 10.11.2020 whereby the Financial Creditor advanced Rs. 11,00,00,000/-(Rupees Eleven Crores only) at the rate of 15% per annum interest, with repayment stipulated on or before 10.11.2021. The ICD Amount was disbursed by cheque No. 000336 on 11.11.2020. On the same date, a demand promissory note was also executed in favour of the Financial Creditor. As security for the said advance, the Corporate Debtor executed an irrevocable and unconditional Corporate Guarantee dated 10.11.2020. Upon the Principal Borrower’s request on 05.11.2021, the due date was extended to 10.11.2022, and subsequently the parties entered into a Settlement Agreement dated 15.02.2023 providing for repayment of the principal amount in two instalments by 30.06.2023 and 31.12.2023 respectively.
The Settlement Agreement expressly preserved the Financial Creditor’s right to recover debts owed under the ICD Agreement in case of default. Following the Principal Borrower’s failure to adhere to the Settlement Agreement, the Financial Creditor issued a Demand-cum-Invocation Notice dated 01.01.2024 calling upon the Corporate Debtor to pay Rs. 17,90,73,973/- (Rupees Seventeen Crores Ninety Lakhs Seventy-Three Thousand Nine Hundred and Seventy-Three only), comprising the principal sum of Rs. 11,00,00,000/- and interest of Rs. 6,90,73,973/-. This Tribunal in the order dated 24.03.2025 found that debt in the sum of Rs. 17,90,73,973/- stood established and that the liability of the Corporate Debtor as guarantor was co-extensive with that of the Principal Borrower. However, the petition was dismissed solely on the ground that the Financial Creditor had failed to establish service of the Demand-cum-Invocation Notice upon the Corporate Debtor in compliance with Corporate Guarantee, which required proof that the notice was sent by post or left at the last known address, and that consequently default by the Corporate Debtor could not be said to have occurred.
Aggrieved thereby, the Financial Creditor preferred Company Appeal (AT) (Ins.) No. 565 of 2025 before the Hon’ble National Company Law Appellate Tribunal. Vide judgment dated 07.08.2025, the Hon’ble NCLAT set aside the aforesaid order and directed this Adjudicating Authority to admit the petition. The relevant portion of the judgement is reproduced herein below:
"4.The Learned Counsel for the respondent submitted that as per his instructions his client has received the notice invoking the guarantee from the applicant.
5.The statement of the respondent's counsel puts to rest the contention raised by the appellant. On a perusal of the impugned order we find that the Adjudicating Authority has entered findings in favour of the appellant vis-à-vis the defence raised by the respondent in its reply except the issue as to service of notice invoking bank guarantee on the respondent. Now this issue too is decided in favour of the appellant.
6.In conclusion this Tribunal allows this appeal and sets aside the impugned order of the Adjudicating Authority dated 24.03.2025, and require the said authority to admit the petition filed by the appellant to initiate CIRP."
The only issue that had weighed before this Tribunal was the service of notice invoking the guarantee, and that the said issue stood decided in favour of the Appellant. Pursuant to the said judgment, the petition was restored vide order dated 06.10.2025 through IA 4562 of 2025. and the Financial Creditor was directed to place on record documents evidencing invocation and service thereof vide order dated 20.11.2025.
In compliance with the said direction, the Financial Creditor has filed an Additional Affidavit dated 02.12.2025 annexing the office copy of the Demand-cum-Invocation Notice dated 01.01.2024. The said notice bears a clear endorsement of receipt dated 02.01.2024 along with the stamp and signature of the Corporate Debtor. An Affidavit of Service evidencing service of the Additional Affidavit upon the Corporate Debtor has also been placed on record.
Clause 23 of the Corporate Guarantee stipulates that notice shall be sufficiently given if sent to the registered address of the Corporate Guarantor if sent by post or left at the last known address. In the present case, the notice was not merely dispatched but was in fact delivered and duly acknowledged by the Corporate Debtor. The deficiency recorded in the earlier order dated 24.03.2025 dismissing the company petition thus stands cured. In view of the facts of the case and in terms of binding direction of the Hon’ble National Company Law Appellate Tribunal, we are satisfied that the petition is complete in all respect and debt and default is established.
The material on record further establishes disbursement of financial debt and execution of an irrevocable Corporate Guarantee by the Corporate Debtor. The Principal Borrower having failed to remit the instalments due on 30.06.2023 and 31.12.2023 under the Settlement Agreement dated 15.02.2023, the account was treated as in default and the Corporate Guarantee was invoked vide notice dated 01.01.2024, duly acknowledged on 02.01.2024. Date of Default is stated as 30.06.2023.
Despite such invocation, the Corporate Debtor failed to discharge the liability, thereby committing default in its capacity as guarantor. The record of default stands registered with National E-Governance Services Limited (NeSL), and the fact of debt and default had already stood established in the earlier round of proceedings culminating in the appellate judgment. The financial debt exceeds the statutory threshold prescribed under Section 4 of the Code, and the petition is complete in all respects in terms of Section 7 of the Insolvency and Bankruptcy Code, 2016.
Insofar as the procedural requirements are concerned, the Financial Creditor vide additional affidavit dated 10.02.2026 has also placed on record a fresh Form 2 (Written Consent of the proposed Interim Resolution Professional) along with an updated Authorization for Assignment (AFA) valid up to 31.12.2026. The proposed IRP, Mr. Rajendra Dattatray Aphahe, having registration No. IBBI/IPA-002/IP-N01002/2020-2021/13258, is duly qualified and eligible to act as the Interim Resolution Professional in this matter.
Accordingly, in compliance with the judgment dated 07.08.2025 passed by the Hon’ble National Company Law Appellate Tribunal in Company Appeal (AT) (Ins.) No. 565 of 2025, and being satisfied that a financial debt exists and default has occurred and the petition being within the limitation period, this tribunal deems fit to pass the following orders:
ORDER
I. The above Company Petition No. (IB) 260 of 2024 is hereby admitted and initiation of Corporate Insolvency Process (CIRP) is ordered against M/s Grevek Investments and Finance Private Limited.
II. The Petitioner has proposed the name of Mr Rajendra Dattatray Aphale, Registration No: IBBI/IPA-002/IP-N01002/2020-21/13258 as the Interim Resolution Professional having email: [email protected], to carry out the functions as mentioned under the Insolvency & Bankruptcy Code, 2016. The proposed IRP has filed his updated Written Consent dated 31.01.2026 along with an updated Authorization for Assignment (AFA) which is valid up to 31.12.2026. Accordingly, we appoint Mr Rajendra Dattatray Aphale as the Interim Resolution Professional (IRP) to carry out the functions as per the Insolvency & Bankruptcy Code, 2016.
III. The Financial Creditor shall deposit an amount of Rs. 4,00,000 towards the initial CIRP cost by way of a Demand Draft drawn in favour of the Interim Resolution Professional appointed herein, immediately upon communication of this Order.
IV. There shall be a moratorium under section 14 of the IBC, in regard to the following:
The institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;
Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;
Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002;
The recovery of any property by an owner or lessor where such property is occupied by or in possession of the Corporate Debtor.
V. Notwithstanding the above, during the period of moratorium: -
The supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during the moratorium period;
That the provisions of Sub-Section (1) of Section 14 of the Code shall not apply to such transactions as may be notified by the Central Government in consultation with any sectoral regulator;
VI. The moratorium shall have effect from the date of this order till the completion of the CIRP or until this Adjudicating Authority approves the resolution plan under Sub-Section (1) of Section 31 of the Code or passes an order for liquidation of Corporate Debtor under Section 33 of the Code, as the case may be.
VII. Public announcement of the CIRP shall be made immediately as specified under Section 13 of the Code read with Regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
VIII. During the CIRP Period, the management of the Corporate Debtor shall vest in the IRP/RP in terms of Section 17 of the Code. The suspended directors and employees of the corporate debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP/RO.
IX. The Registry shall send a copy of this Order to the Registrar of Companies, Maharashtra, Mumbai, for updating the Master Data of the Corporate Debtor.
X. The Registry is directed to communicate this Order to the Financial Creditor, the Corporate Debtor and the IRP by speed post and email immediately, and in any case, not later than two days from the date of this Order.
XI. The said Registrar of Companies shall send a compliance report in this regard to the Registry.
XII. The Registry is also directed to send a copy of this order to the Insolvency and Bankruptcy Board of India (IBBI) for their record.
XIII. A certified copy of this order may be issued, if applied for, upon compliance with all requisite formalities.
XIV. Accordingly, this Petition is Admitted.