Axis Bank Ltd vs Manoj Jiwatram Lalwani

Mr. Alok D. Mishra, Ld. Counsel for the Petitioner present. None present on behalf of the Personal Guarantor.

This is a Company Petition filed by Axis Bank, (“the Financial Creditor”), under Section 95 of the Insolvency & Bankruptcy Code, 2016 (IBC) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 seeking to initiate Personal Insolvency Resolution Process (CIRP) against Mr. Manoj Jiwatram Lalwani (“the Personal Guarantor”).

Ld. Counsel for the Financial Creditor submits that the copy of Demand Notice dated 01.02.2023 was successfully delivered upon the Personal Guarantor to the Corporate Debtor on 04.02.2023 on their last known correct address, and the copy of the Petition was also successfully delivered through email dated 12.04.2023. However, the Personal Guarantor refused to take delivery of the Court Notice dated 16.06.2023, issued by this Tribunal dispatched, through RPAD as well courier. This Bench is of the opinion that the refusal to receipt the notice is a deemed service upon the noticee. Therefore, the requirement u/s 95 of the Code is completed.

This bench appoints Ms. Manisha Sanjay Agrawal, Insolvency Resolution Professional having Registration No. IBBI/IPA-003/IP-N00241/2019-2020/12836; as the Resolution Professional (RP) in the matter. The fee payable to Resolution Professional (RP) shall be in accordance with the Insolvency and Bankruptcy Board of India (IBBI) Regulations/Circulars/ Directions issued in this regard.

The Resolution Professional shall examine the Application within 10 days from the date of his appointment and submit its report to the Adjudicating Authority recommending for approval or rejection of the Application as referred under section 99(1) of the Code. The RP is also directed to serve the copy of report on both the sides Financial Creditor as well as the Personal Guarantor and file proof of service of report.

This Bench also directs for an advance payment of Rs.2,00,000/- (Rupees two lakh only) to be paid by the Financial Creditor to the Resolution Professional (RP) immediately to initiate the process which shall be adjusted towards the fee and expenses payable to the Resolution Professional (RP).

The interim-moratorium under Section 96(1) (a) of the Insolvency and Bankruptcy Code, 2016 has commenced on the date of filing of this application by the Financial Creditor and will cease to have effect on the date of admission.

During such interim-moratorium period -

ii) the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt.

List this matter for further consideration on 07.08.2023.