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2022 (2) TMI 1289 - HC - Indian LawsAttachment and sale of their properties - enforcement of guarantees given - assignmnet of debt - right of NCLT to proceed against guarantors - Financial Creditors or not - HELD THAT:- Since the Resolution Plan approved by the NCLT on 19.10.2020 itself contemplated assignment of the debt of the principal borrower to M/s Hasaud Steel Limited, and such assignment, by virtue of the above provisions, would take effect only if the exposure to the borrower is fully extinguished as per Clause 16 of the RBI circular RBI/2018-19/203 dt. 7.6.2019 , prima facie, there would be extinguishment of debt in the books of respondents No.3 to 11. This is because if such debt is not extinguished in the books of respondents No.3 to 11, the Resolution Plan itself cannot be deemed to be implemented. Thus once the debt stands assigned to M/s Hasaud Steel Limited, the loan assignment payment must have been paid on a pro rata basis to each of the respondents No.3 to 11, and it would be the said purchaser who would be entitled prima facie to exercise all rights as a creditor in respect of the remaining debt, including the right to enforce any security, guarantee or mortgage granted in respect of such debt. Primafacie it appears that the respondents are not entitled to continue the proceedings before the NCLT-New Delhi and the DRT-II, New Delhi to enforce the personal guarantees given by the petitioners to the loans given by the respondents to M/s ACCIL and only M/s Hasaud Steels Limited appears to be entitled to do so. For filing of replies by the respondents, list along with CWP-24980-2021, CWP-26726-2021, CWP-26715-2021 and CWP-26668- 2021, on 21.03.2022.
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