CS(COMM) No.1246 & 1247/ 2018

Page 1 of 53

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

%

Date of decision: 22^nd February, 2019.

+

CS(COMM) 1246/2018 & IAs No.16056/2018 (u/O XXXIX R-

1&2 CPC) & 16060/2018 (u/O II R-2 CPC)

LIBERTY HOUSE GROUP PTE LTD.

..... Plaintiff

Through:

Mr. A.S. Chandhiok, Sr. Adv. with

Mr. Krishendu Datta, Ms. Sweta

Kabra, Mr. Aly Mirza & Ms. Priya

Agarwal, Advs.

Versus

STATE BANK OF INDIA & ORS.

..... Defendants

Through:

Mr. Sandeep Sethi, Sr. Adv. with

Mr. Sanjay Bhatt & Mr. Sumit

Nagpal, Advs. for D-1&4.

AND

+

CS(COMM) 1247/2018 & IAs No.16061/2018 (u/O XXXIX R-

1&2 CPC) & 16065/2018 (u/O II R-2 CPC)

LIBERTY HOUSE GROUP PTE LTD. ..... Plaintiff

Through:

Mr. A.S. Chandhiok, Sr. Adv. with

Mr. Krishendu Datta, Ms. Sweta

Kabra, Mr. Aly Mirza & Ms. Priya

Agarwal, Advs.

Versus

STATE BANK OF INDIA & ORS.

..... Defendants

Through:

Mr. Abhinav Vasisht, Sr. Advs. with

Ms. Misha, Mr. Vaijayant Paliwal

and Ms. Charu Bansal, Adv.

CORAM:

HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW

1. The application of the plaintiff in both the suits, for interim

injunction restraining encashment of Bank Guarantees (BGs) and the

2019:DHC:1232

CS(COMM) No.1246 & 1247/ 2018

Page 2 of 53

objection of the defendants to the subject jurisdiction of this Court to

entertain these suits, are for consideration.

2. CS(COMM) No.1246/2018 has been filed against (a) State Bank of

India (SBI); (b) Barclays Bank PLC (Barclays), Nehru Place; (c) Barclays

Bank PLC, United Kingdom; and, (d) Mr. Dinkar T. Venkatasubramanian,

for (a) permanent injunction restraining (i) SBI from invoking and/or

encashing and/or seeking remittance under BG No.BARCBG2018145 dated

10^th May, 2018 for Rs.40,00,00,000/- issued by Barclays in favour of SBI

on instructions of the plaintiff; (ii) Barclays from remitting the amounts

under the said BG and from transmitting the amount under the Counter

Guarantee; and, (b) declaration that the notice of Demand/Invocation dated

20^th November, 2018 addressed by SBI to Barclays is invalid, illegal and

band in law, pleading:-

(i)

Castex Technologies Limited (Castex) is a part of Amtek

Group of Companies. Castex was unable to meet its financial

obligations and Corporate Insolvency Resolution Process (CIR

Process) of Castex was put into motion by the SBI under

Section 7 of the Insolvency and Bankruptcy Code, 2016

(Code). The National Company Law Tribunal (NCLT)

Chandigarh, on 20^th December, 2017 admitted the said

application

and the

defendant

no.4

Mr.

Dinkar

T.

Venkatasubramanian was confirmed by the Committee of

Creditors (CoC) as the Resolution Professional (RP) of Castex.

2019:DHC:1232

CS(COMM) No.1246 & 1247/ 2018

Page 3 of 53

(ii)

The RP prepared and floated a Process Memorandum dated

30^th March, 2018 for consideration and selection of resolution

plans from prospective resolution applicants.

(iii) The Process Memorandum required the prospective resolution

applicants to submit a Bid Bond Guarantee (BBG) and the

plaintiff, in accordance therewith submitted the BBG of

Rs.40,00,00,000/- in favour of SBI, by furnishing a Counter

Guarantee in favour of Barclays.

(iv) The resolution plan submitted by the plaintiff was accepted by

the CoC on 30^th August, 2018 and a Letter of Intent (LoI) of

the said date was issued in favour of the plaintiff and which

was accepted by the plaintiff vide its letter dated 3^rd

September, 2018 to the RP.

(v)

The RP filed an application under Section 30(6) read with

Sections 31 and 60 (5) of the Code for approval by the NCLT

of the said resolution plan submitted by the plaintiff and

approved by the CoC.

(vi) The plaintiff, as per the terms of the LoI, was required to

within ten days thereof submit a Performance Bank Guarantee

(PBG) of the value of Rs.100,00,00,000/- and the RP, vide its

letter date