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2022 (11) TMI 1095 - AT - Insolvency and BankruptcyValidity of Guarantee Agreement - contravention of Section 185 & 186 of the Companies Act, 2013 - HELD THAT:- It is very much clear that the fresh guarantee executed on 06.05.2017 between the Bank and the Corporate Debtor of Rs.3007.85 lakh is still existing and Corporate Debtor is liable to that extent to repay the same together with interest as stipulated in the loan documents and so executed between the parties - It is clearly written that the Guarantor has agreed to indemnify the bank against all loss and repay and satisfy the bank on demand, the general balance due from the borrower. It is also very much clear that the second Deed of Guarantee executed on 06.05.2017 is not in continuation of earlier deed of guarantee dated 28.06.2013 as elaborately explained in para 74 of the impugned order - As far as the issue of contravention of provision of Section 185 of the Act prevailing as on that date (pre -07.05.2018 amendment to the Act) is concerned, it is very much clear that this is the provision which the company has to comply internally and if they fail to comply the necessary punishment is available in the same section i.e. Section 185, both monetary penalty and /or imprisonment. As far as bank is concerned, they have been provided time to time the Board Resolution showing the approval of the Board. Hence, if there is any irregularity then for that the Members of the Board are responsible. If the official of the bank have committed some irregularity, then it is the Bank who has to prosecute these officers against the provisions laid down under the law applicable to them. There are no inconformity in the impugned order and constraint to uphold the impugned order - appeal disposed off.
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