The NCLT was told that after Leel Electricals had defaulted on the repayment of credit facilities obtained by it from Jammu and Kashmir Bank and was eventually declared a Non-Performing Asset in 2019.
Following a 2021 order passed by the NCLT, Leel Electricals is presently undergoing liquidation.
As of December 31, 2021, the outstanding dues amounted to over ₹50 crores, it was stated.
The bank, meanwhile, sent a Guarantee Invocation Notice to Himalayan Mineral Water demanding repayment of these dues. Upon a failure to do so, the bank filed a plea to initiate CIRP against Himalayan Minter Water before the NCLT. The bank added that CIRP can be initiated against the corporate guarantor even if the principal borrower (Leel Electricals) is undergoing liquidation.
Source: Barandbench
