NCLT issues Insolvency Resolution Process against Wizcraft as principal loan

“In view of the fresh execution of NOC and arrangement between the bank, GINCL and HSVP. Hence, the guarantor‘s liability gets discharged. The bank has deliberately concealed the facts of this agreement,” Wizcraft argued.

The NCLT Coram of Suchitra Kanuparthi, Member (Judicial) and V Nallasenapathy, Member (Technical), however, noted that Wizcraft in September 2017 responded to a letter of IDBI demanding the payment, had sought some time for the same.

“The Corporate Debtor (Wizcraft) has sought time which amounts to admission and acknowledgment of liability and also recorded the default of non-payment of money by the Principal Borrower (GINCL) thus the letter of September 2017, amounts of acknowledgment of liability,” the NCLT held.

The NCLT further noted that the IDBI Bank has complied with all the provisions of the Insolvency and Bankruptcy Code and thus it’s plea “deserved to be admitted.”