Allowing the plea of Mitsubishi Heavy Industries, the Insolvency Appellate Tribunal NCLAT has set aside the order passed by NCLT, which had restrained the Japanese multinational engineering from encashing the Performance Bank Guarantee submitted by its contractor Punj Lloyd.
NCLAT said NCLT “committed an error” by allowing a plea filed by the RP of Punj Lloyd to restrain Mitsubishi Heavy Industries, State Bank of India and other banks who have given counter guarantee to invoke the Bank Guarantee.
“Order passed by the Adjudicating Authority (NCLT), thus is unsustainable,” said a National Company Law Appellate Tribunal bench.
The NCLAT also said that it is well-settled law that Section 14 “in no manner impact the right of the Appellant…
