ORDER

1. The present Applicant, has been filed by Applicant / Patel Engineering Ltd ("Guarantor" or “Corporate Guarantor”), seeking the following prayers:

“A. This Hon'ble Tribunal be pleased to pass an order directing transfer of Company Petition (IB) No. 1092 of 2023 pending before the Hon'ble National Company Law Tribunal, Mumbai Bench to the Hon'ble National Company Law Tribunal, Bengaluru Bench;

B. This Hon'ble Tribunal may pass such other order or orders as it may deem fit and proper in the facts and circumstances in the case and thus render justice.”

Brief Background

2. The Applicant/Patel Engineering Ltd ("Guarantor" or “Corporate Guarantor”) entered into a Joint Development Agreement ("JDA") with the Principal Borrower, i.e., GM Infinite Dwelling (India) Pvt. Ltd ("Principal Borrower /GM Infinite") for development of the Applicant's property bearing Sy No. 352 (Old Sy No. 155/11) admeasuring 4 acres 38 gunthas, situated at Village - Hullimangla, Jigani - Hobli, Anekal Talku, Bangalore. Under the JDA, GM Infinite was required to complete the Project at its own cost.

3. To complete its obligations under the Project, GM Infinite approached the Respondent/SBI for a loan facility. A Corporate Guarantee dated 06.07.2018 ("Corporate Guarantee") was given by the Applicant for the said loan facility.

4. GM Infinite and State Bank of India ("Financial Creditor" /"Respondent") executed a Loan-cum-Hypothecation Agreement dated 07.07.2018 under which the Respondent disbursed a loan facility aggregating to Rs 49 Crores to GM Infinite on various dates between 11.07.2018 and 12.02.2020. GM Infinite eventually defaulted on its loans.

Submissions of the Applicant

5. It is submitted that GM Infinite eventually defaulted on its loans. On 16.09.2023, the Respondent filed Company Petition (IB) No-4 of 2024 against the Principal Borrower, i.e., GM Infinite under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the NCLT Bengaluru Bench. The said Company Petition has been admitted by the Hon'ble NCLT, Bengaluru Bench vide its order dated 30.07.2024.

6. GM Infinite has challenged the order dated 30.07.2024 before the Hon'ble Karnataka High Court vide WP No.20601/2024. The Applicant is not a party to the said writ petition.

7. It is submitted that on 21.09.2023, Company Petition (IB) No.1092 of 2023 came to be filed by the Respondent against Applicant/Corporate Guarantor under Section 7 of the IBC before NCLT Mumbai Bench for default on the payment made by the Principal Borrower.

8. The Applicant instituted a Civil Suit before the Ld. Commercial Court, Bengaluru [Comm (OS) No. 1159/2023] seeking, inter alia, a declaration that no liability accrues under the Corporate Guarantee and in the alternative, a determination of the extent of the Applicant's liability under the Corporate Guarantee. The Ld. Commercial Court, by its ad interim order dated 09.07.2024 was pleased to restrain the Respondent from taking any precipitate steps against the Applicant. Consequently, the hearing in Company Petition (IB) No.1092 of 2023 was adjourned sine die.

9. Vide order dated 25.07.2024 in Comm (OS) No. 1159 of 2023, the Ld. Commercial Court, Bengaluru was pleased to grant a temporary injunction in favour of the Applicant, restraining the Respondent from taking/ further proceeding with any steps or actions against the Applicant pursuant to the Guarantee dated 06.07.2018 executed by the Applicant in favour of the Respondent bank till disposal of the said Suit.

10. It is submitted that Respondent challenged the said order dated 25.07.2024 before the Hon'ble Karnataka High Court vide COMAP No.372 of 2024. Hon'ble Karnataka High Court, vide its judgment dated 17.02.2026, has been pleased to allow the said Appeal.

11. It is submitted that consequently, post the judgment of the Hon'ble Karnataka High Court, the proceedings in Company Petition (IB) No.1092 of 2023 have recommenced before Bench I of the NCLT Mumbai Bench, though the same has not be