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Judgment
O R D E R
This application has been filed under Regulation 19(1) of the IBBI (Insolvency Resolution Process to Personal Guarantor to the Corporate Debtor) Regulations, 2019 read with Rule 11 of NCLT Rules, 2016 by the Resolution Professional in the matter of Kerala State Co-operative Bank Limited, seeking a relief to take on record the Reports of the RP reporting that the Personal Guarantor failed to submit a repayment plan within the allowed time.
This Tribunal vide order dated 08.04.2022 admitted the Insolvency Resolution Process of the Personal Guarantor, K Sivadas in an application by the Financial Creditor, Kerala State Co-operative Bank Limited under Section 95 of the Insolvency and Bankruptcy Code, 2016. Mr. K Sivadas is the personal Guarantor to the Corporate debtor, M/s. Lakeview resorts and Ayurvedic Research Centre Ltd.
RP stated that the she has made public announcement inviting claims on 19.04.2022. Thereafter, the RP has prepared the list of claims and filed the Reports before this Tribunal. It is further submitted that after the extension of time of three times for submission of repayment plan, the personal guarantor failed to submit a repayment plan and hence the Meeting of Creditors resolved to file the report before the Adjudicating Authority that no repayment plan has been received by the RP. Therefore, the RP prayed to take on record these Reports.
We have heard the learned Resolution Professional Ms. Celine P Thomas and perused the documents annexed with the Report. On the personnel guarantor side initially counsel Mr. John Kanayamplavan, appeared and took time to file objection to the report of the Resolution professional but later not filed any appearance or objection.
As per section 105 of IBC 2016 the debtor shall submit repayment plan, then the Resolution professional shall submit the repayment plan along with his report to the adjudicating Authority. After conducting the meeting of creditors on the repayment plan the Resolution professional shall prepare report of the meeting of creditors and submitted to the Adjudicating Authority. The Adjudicating Authority then pass an order either approving or rejecting the report. But in this case in the absence of the any repayment plan filed by the personal guarantor the supra procedure could not be carried out. The non-filing of repayment plan causes similar effect of rejection of repayment plan under section 114 as provided under section 115(2) of IBC 2016.
In the situation since the debtor has not filed repayment plan in spite of giving sufficient time, this Adjudicating Authority intend to pass a further order as provided under section 115(2) of IBC 2016, accordingly the report is taken on file. In consequence of non-filing of repayment plan by the debtor/personal guarantor it is ordered that the debtor and creditors shall be entitled to an application for bankruptcy under Chapter IV. Thus, this application is ordered sand disposed of.
The Registry is hereby directed to forward the copy of this order to the IBBI as provided under section 115(3) of IBC 2016 and to send e-mail copies of the order to all the parties and their counsel for information and for taking necessary steps.
Let the certified copy of the order be issued upon compliance with requisite formalities.
File be consigned to records.