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The 'Resolution Professional' of 'Jaypee Infratech Limited'- ('Corporate Debtor') filed application (CA No. 26 of 2018) under Section 43, 45, 60(5)(a) & 66 read with Section 25(2)(J) of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) before the Adjudicating Authority ('National Company Law Tribunal), Allahabad Bench, Allahabad seeking direction that the transactions entered into by the promoters and Directors of the 'Corporate Debtor' creating mortgage of 858 acres of immovable property owned by it and in possession of the 'Corporate Debtor', to secure debt of related party i.e. 'Jaiprakash Associates Limited' by way of mortgage deeds dated 29th December, 2016, 12th May, 2014, 7th March, 2017, 24th May, Company Appeal (AT) (Insolvency) No. 243, 244, 245, 249, 276, 301, 331, 343, 348, 349, 353, 370, 374, 376, 411, 424, 436, 458, 492, 511, 524 of 2018 2016 and 4th March, 2016 are fraudulent and wrongful transactions within the meaning of Section 66 of the 'I&B Code'.

5. According to the Appellants, a mortgage debt is covered by the definition of 'debt' under Section 3(11) of the 'I&B Code' and it being liability or obligation in respect of a claim which is due from the 'Corporate Debtor' or a mortgagor and the Appellants have a right to payment.

6. According to learned counsel for the Appellants, a mortgage debt constitutes a 'financial debt' within the meaning of Section 5(8) of the 'I&B Company Appeal (AT) (Insolvency) No. 243, 244, 245, 249, 276, 301, 331, 343, 348, 349, 353, 370, 374, 376, 411, 424, 436, 458, 492, 511, 524 of 2018 Code' and the Adjudicating Authority misconstrued the definition of 'financial debt'. The Adjudicating Authority failed to notice that the 'Corporate Debtor' stood in the position of a 'guarantor' with respect to the security provided by it and also failed to notice the meaning of 'financial debt' particularly clauses (a) to (i) of Section 5(8) of the 'I&B Code', which provides extended meaning to 'financial debt'.

Company Appeal (AT) (Insolvency) No. 243 of 2018

10. Learned counsel for the Appellant- 'Axis Bank Limited' provided the table of assets mortgaged to it, as under:

S.N. Name of the Bank Date of the Mortgage Assets encumbered under the Mortgage
1. Axis Bank Limited- February 24, 2015 (to cover (a) 167.229 acres of land at Appellant in Comp. App. the NCD exposure of the Village Chagan and Chhalesar, Company Appeal (AT) (Insolvency) No. 243, 244, 245, 249, 276, 301, 331, 343, 348, 349, 353, 370, 374, 376, 411, 424, 436, 458, 492, 511, 524 of 2018 (Ins.) AT No.(s) 243, 301 of Corporate Debtor) (pp. 243, Agra, Uttar Pradesh (p. 348 of 2018 314 of the Appeal Paperbook) the Appeal Paperbook); and This was modified on September (b) 166.9615 acres of land at 15, 2015 (wherein the Security Village Tappal, Kansera, and would cover the Rupee Term Jeenagarh, Aligarh, Uttar Loan exposure, in addition to the Pradesh (p. 275 of the Appeal NCD Exposure). Paperbook).

5. DATE OF FILING APPLICATION 06.02.2018 (C.A. No. 26/2018 in UNDER SECTION-43 AND OTHER Company Petition No. PROVISIONS OF LAW IB/77/ALD/2017.

Company Appeal (AT) (Insolvency) No. 492 of 2018 (Allahabad Bank)

44. The case of the Appellant- 'Allahabad Bank' is that two different mortgage deeds each dated 24 th February 2015, were executed by the 'Corporate Debtor' mortgaging its properties (as third party security) (i) measuring 167.229 acres situated at Village Chaugan and Chhalesar, Agra, Uttar Pradesh ("Property 1") and (ii) measuring 166.9615 acres situated at Village Tappal, Kansera & Jeenagarh, Aligarh, Uttar Pradesh ("Property 2") to secure the financial assistance of 'Jaiprakash Associates Limited', for the first time in favour of 'Axis Bank Limited' and 'State Bank of India' (both lenders of 'Jaiprakash Associates Limited') on 24th February 2015. Later, upon accession of other lenders and enhancement of secured limits further mortgage was effectuated on 15 th Company Appeal (AT) (Insolvency) No. 243, 244, 245, 249, 276, 301, 331, 343, 348, 349, 353, 370, 374, 376, 411, 424, 436, 458, 492, 511, 524 of 2018 September, 2015 and again on 29 th December 2016. The mortgages in favour of the Appellant were created vide registered mortgage deeds dated 15 th September, 2015 and 29th December, 2016. Company Appeal (AT) (Insolvency) No. 511 of 2018 (Jammu & Kashmir Bank)