ZEE ENTERTAINMENT ENTERPRISES LIMITED Vs. INDUSIND BANK LIMITED

JUDGEMENT

(1.) The Respondent No.1-bank has filed the present application seeking clarification of the order dtd. 3/12/2021 to the effect that this Court never prohibited Respondent No.1-bank from initiating or maintaining proceedings under the Insolvency and Bankruptcy Code, 2016 (for short 'IBC') against the Appellant-Zee.

(2.) It is the case of the Respondent No.1-bank/applicant that the Appellant-Zee is the guarantor to the loan availed by the Respondent No.2 from Respondent No.1-bank in terms of the Debt Service Reserve Account Guarantee Agreement dtd. 29/8/2018 (for short 'DSRA Guarantee Agreement'), which provides that in case of default of Respondent No.2, Respondent No.1-bank can invoke the DSRA Guarantee Agreement and recover the amount that is due from Respondent No.2, from Appellant-Zee. On 1/10/2020, Respondent No.1 bank issued notice to Appellant-Zee invoking the DSRA Guarantee Agreement and calling upon the Appellant-Zee to pay the amount of Rs.83,70,14,289.00.

(3.) The Appellant-Zee filed a civil Suit being CS(OS)(COMM) No. 500/2020, along with an application being I.A.10556/2020 seeking the interim relief that the Respondent No.1-bank be restrained from seeking recovery of any amount under the DSRA Guarantee Agreement in terms of the Respondent No.1-bank's notice dtd. 01/10/2020. The reliefs sought for in the interim application being I.A. 10556/2020 are reproduced hereinbelow: