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2022 (7) TMI 1492 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL NEW DELHIDismissal of application filed under Section 7 of IBC - guarantee given to the Financial Creditor or not - whether only the securities were pledged by the Pledge Agreement dated 27.02.2015? - HELD THAT:- It is apparent from the facts of the case that when it was decided by the Financial Creditor to extend loan to the Borrower a Facility Agreement was executed in which security package was given as contained in the terms and conditions. The only personal guarantee in the Facility Agreement is that of Manoj Kumar Agarwal and none else but it appears that this security was not found sufficient by the Financial Creditor, therefore, on the same date an Unattested Pledge Agreement was also executed in which the present Respondent i.e. Mahananda Suppliers Limited and Sungrowth Share and Stocks Limited came forward to support the Borrower i.e. Adhunik Meghalaya Steels Private Limited and all of them pledged their security which has been mentioned in the Schedule appended with the Agreement and made themselves liable to pay the dues of the Financial Creditor jointly and severally, meaning thereby giving an option to the Financial Creditor to initiate action against the security of any of the pledgor but in no case the pledgor can be termed as a principal debtor for the purpose of recovery of the entire amount that too by resorting to the filing of the application under Section 7 of the Code. There are no error in the findings recorded by the Adjudicating Authority - the present appeal is totally without any merit and deserves to be dismissed - appeal dismissed.
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