Standard Chartered Bank Vs. Satish Kumar Gupta, R.P. of Essar Steel Ltd. & Ors. - Re-agitation of a claim by a creditor

NCLAT (04.07.2019) in Standard Chartered Bank Vs. Satish Kumar Gupta, R.P. of Essar Steel Ltd. & Ors. [Company Appeal (AT) (Ins.) No. 242 of 2019] held that; the ‘Financial Creditors’ in whose favour guarantee were executed, as their total claim stands satisfied to the extent of the guarantee, they cannot reagitate such claim from the Principal Borrower”

Excerpts of the order;

# 221. In this background, the cases in which the Adjudicating Authority or this Appellate Tribunal could not decide the claim on merit, we have allowed such Appellants to raise the issue before an appropriate forum in terms of Section 60(6) of the ‘I&B Code’. The ‘Financial Creditors’ and the ‘Operational Creditors’ whose claims have been decided by the Adjudicating Authority or this Appellate Tribunal, such decision being final and is binding on all such ‘Financial Creditors’ and the ‘Operational Creditors’ in terms of Section 31 of the ‘I&B Code’. Their total claims stand satisfied and, therefore, they cannot avail any remedy under Section 60(6) of the ‘I&B Code’. The ‘Financial Creditors’ in whose favour guarantee were executed as their total claim stands satisfied to the extent of the guarantee, they cannot reagitate such claim from the Principal Borrower.

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