Bliss House was already undergoing insolvency proceedings before the NCLT, New Delhi. Its admission into insolvency has been upheld up to the Supreme Court, the appellate tribunal recorded.
Taking Imagine Estate’s case as the lead matter, the NCLAT examined the loan agreement and hypothecation deed together. It found that the documents imposed repayment obligations extending beyond the assets provided as security.
The loan agreement included hypothecators within the definition of “obligors”, made them jointly and severally liable for the dues, and required them to meet any shortfall from any source, the tribunal found.
“The Corporate Debtor’s liability is, therefore, not limited to the hypothecated assets, Clause 2.2.4 obliges…