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Judgment
PER SHRI L. N. GUPTA, MEMBER (T)
Under consideration is the Application preferred by DBS Bank India Limited filed through Resolution Professional, Ms. Ritu Rastogi (the 'Applicant/Financial Creditor') under Section 95(1) of IBC, 2016 read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019 for initiating the Insolvency Resolution Process (the "IR Process") against Mr. Shiv Sevak Singh (the Personal Guarantor/Debtor) who is the Guarantor of M/s VIL Limited (the 'Corporate Debtor').
It is stated by the Applicant that the Corporate Debtor has availed the multiline working capital facilities which were renewed and amended from time to time under various facility letters entered between the Applicant and the CD. It is added that in the year 2010, the Applicant Bank made available to the CD working capital facilities aggregating up to Rs. 40,00,00,000/-(Forty crore) only on the terms and conditions stipulated under the Working Capital Facility Agreement dated 3rd May 2010, which were granted under the sanction letter No. CDT/ADMIN/216/2010 dated 10th April, 2010.
It is submitted by the Applicant that in pursuance to Clause V of the aforesaid agreement, the Applicant has entered into the Guarantee deed dated 4th May, 2010 with Mr. Shiv Sevak Singh and Mr. Naushad Ahmed being Directors of the Corporate Debtor, who gave personal Guarantee to secure the financial facility taken by Corporate Debtor.
It is submitted by the Applicant that it had served the Demand Notice to the Respondent/Personal Guarantor Mr. Shiv Sevak Singh via Speed Post on 21.01.2021 seeking payment of the outstanding/unpaid debt of Rs. 59,65,43,741/- as on 07.07.2015. Though it is mentioned in the Index of the Application that the demand notice dated 21.01.2021 along with proof of service is annexed at page no. 80-82 of the application, but only the demand notice is found annexed at page no. 80-82 of the application and there is nothing on record to depict that the Demand notice was served to the Respondent/Personal Guarantor.
Further, the Creditor/Applicant has not placed on record any document to demonstrate that the Personal Guarantee against the Respondent herein was invoked.
We further notice from the record that there is one case bearing no. C.S. 583 of 2019 is pending before the Patiala House Court.
Accordingly, in the interest of justice, we provide an opportunity to the Creditor/Applicant to file the following documents on record by way of an affidavit within one week from today, failing which order shall be passed as per the material available on record in DMS :
the proof of service in support of service of Demand notice to the Respondent/Personal Guarantor.
any document/proof of invocation of guarantee against the Respondent/Personal Guarantor including notice under Section 13(2) or 13(4) of SARFAESI Act, 2002, issued if any.
the latest order and relevant records of C.S. 583 of 2019 pending before the Patiala House Court along with summary, inter alia, indicating the subject matter of the case and present status of the said case.
The matter is accordingly de-reserved.
List the matter on 23.08.2022.