M. K. RESELY Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) The petitioners, who have mortgaged their properties to secure the dues of M/s.Raihan Health Care Private Limited, have approached this Court seeking to quash Ext.P14 order of the National Company Law Tribunal, Kochi and to declare that properties of the petitioners included in Ext.P1 application stated to have been mortgaged to 1st and and 2nd respondents as guarantors, are not liable to be included in the Liquidation Estate of the Company M/s.Raihan Health Care Private Limited.

(2.) The Company M/s.Raihan Health Care Private Limited obtained credit facilities from the 1st respondentUnion Bank of India and the 2nd respondent-Meenachil East Urban Co-operative Bank Limited. The petitioners mortgaged their properties to the Banks as guarantors.

(3.) The 1st respondent-Union Bank of India resorted to Insolvency and Bankruptcy Code, 2016 and initiated insolvency proceedings against the Company, approaching the National Company Law Tribunal. The Tribunal appointed the 3rd respondent as Liquidator. The Liquidator informed the Tribunal that landed property of 100.16 Ares mortgaged to the Bank is leasehold land of the Promoters/Directors of the Corporate Debtor. The lease was for a period of 99 years and was intended for construction of a Hospital. The lease deed empowered the Company to mortgage the leasehold land for obtaining advances from financial institutions.