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Judgment
This is a new Petition filed under Section 95 (1) of Insolvency & Bankruptcy Code, 2016 seeking initiation of the Insolvency Resolution Process against the Personal Guarantor to the Corporate Debtor i.e. Newgen Speciality Plastics Limited.
We have heard the Counsel for the Financial Creditor and also perused the present Application. The prima-facie requirement of Section 95 of the Code is met. Accordingly, we hereby appoint Mr. Anil Tayal having Registration No.IBBI/IPA-P01118/2018-2019/11818 as the Resolution Professional to enquire into the matter of proposed initiation of Insolvency proceedings against the Personal Guarantor, namely, Shri Sheo Kumar Singh. He is directed to complete his enquiry into the matter within 10 days from today and submit his report before this Tribunal for further consideration. Further, it is made clear that Interim Moratorium in terms of Section 96 of the Code has commenced from the date of filing of the present Application.
Accordingly, the following shall remain prohibited in terms of Section 96:
‘ 96(1) when an Application is filed under Section 94 or 95 (a), Interim Moratorium shall commence on the date of the application in relation to all the debts and shall cease to have effect on the date of admission of such application and
(b)during the interim – moratorium period –
(i)any legal action or proceedings pending in respect of any debt shall be deemed to have been stayed, and
(ii)the creditors of the Debtor shall not initiate any legal action or proceedings in respect of any debt
(2)where the application has been made in relation to a firm the interim moratorium under sub section (1) shall operate against the partners of the firm as on the date of the application,
(3)the provisions of sub section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector Regulator”
The Resolution Professional is also directed to make compliance with regard to the present proceedings as per the provisions of Chapter 3 of the IBC, 2016.
Let the matter be listed for further consideration after a month.
List on 10.1.2022.