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08-Jul-2017 19:40

Meanwhile, the Company approached National Company Law Tribunal, Ahmedabad (NCLT) under section 10 of the Code seeking initiation of corporate insolvency resolution process under the Code.The NCLT its order dated admitted the application of the Company and ordered for commencement of ‘moratorium’ under section 14 of the Code.In conjunction with Aaron Equipment Company, is liquidating all machinery and equipment from a Major Automotive Manufacturing Supply facility in Vandalia, Ohio.This online auction will take place on Tuesday, January 23 starting at 8am and will begin to close at 6pm the same day.Subsequently, SBI had filed an application sometime in 2017 before the DRT, Allahabad against the Company and the Guarantors under section 19 (3) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 (RDDBFI Act) for recovery of the amount due from the Company, under the loan agreement.The DRT accepted SBI’s application and had initiated proceedings against the Company and the Guarantors.But pressures on the business, including sluggish foot traffic at shopping centers and a shift to e-commerce, have persisted. The deal created 1,400 co-branded locations with Sprint, plus several hundred franchised units. The Sprint partnership also was meant to give the stores an edge.

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It confers legal protection to guarantors who have provided surety for the debt in question during the moratorium period.Aggrieved by the findings of the DRT, the Guarantors filed an appeal invoking the writ-jurisdiction of the Court to determine the position.Moratorium vis-à-vis Liability of Guarantors of a Corporate Debtor under the Code In a detailed ruling, the Court appreciated the arguments advanced by the counsels of the Guarantors including, that the proceedings against the Guarantors before the DRT ‘were bad’ specially during the continuation of moratorium against the Company, as until the resolution process under the Code is consummated, the DRT would not be able to adjudicate any claims of disputed debt owed by the Guarantors to SBI and as such the entire exercise would be counter-intuitive.The Court could have provided more clarity and analysed the interplay of the Code vis-à-vis the RDDBFI Act or on the guiding principle and approach of the NCLT, while acting as the adjudicating authority for the Guarantors under the Code or addressing recovery proceeding against the Guarantors under the RDDBFI Act.

It is also interesting to note that under the erstwhile Sick Industrial Companies (Special Provisions) Act 1985 (SICA), protection to guarantors was available only by way of a bar on ‘suits’ and not against any ‘recovery proceedings’ and the guarantors could not claim immunity, in case any recovery proceedings were initiated before the DRT.A filing could happen within the coming days and will probably result in liquidation, said the people, who asked not to be identified because the process isn't public.



Versuch einer standortbestimmung in medizinischer, strafrechtlicher und moralthoelogischer Sicht. HUBER, J., SPONA, J.: Probleme der Dosisfindung im Humanversuch. SPONA, J., HUBER, J., SCHMIDT, J.: Inhibition of ovulation with 35 g ethinylestradiol and 2 mg cyproterone acetate. HUBER, J., SCHMIDT, J., SPONA, J.: Comparison of two regimens for hirsutism therapy: 300 mg Cyproterone acetate i.m. VYTISKA-BINSTORFER, E., BINDER, K., HUBER, J., SPONA, J.: Effect of progesterone administration on -HCG-serum levels in early pregnancy. on Gynecological Endocrinology, S.: 671, Parthenon Press, New Jersey, 1986. … continue reading »


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