AI Structured Summary
Not yet generated for this judgment
Judgment
This is a Petition under Section 95(1) of Insolvency & Bankruptcy Code 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 read with section 60 (2) of the Insolvency and Bankruptcy Code, 2016 along-with Affidavit.
Counsel for the Applicant/Financial Creditor is present. The Counsel has taken us through the present application which seeks initiation of CIRP proceedings under Section 95 against the Personal Guarantor to the Corporate Debtor.
We have heard the submissions made by the Counsel for the Applicant. We have also perused the Petition which has been filed by the Financial Creditor.
At this juncture, Advocate Raj appears for the Personal Guarantor and seeks time for consideration of the present application by this Authority on the ground that there are certain settlement talks are going on between the parties. Counsel for the Financial Creditor has stated that there are no such proposals for talks going on between the parties and he does not have any instructions in this regard.
In view of this, we hereby appoint Mr. Yatin Sharma, Insolvency Professional having Registration No. IBBI/IPA-001/IP-P-02008/2020-2021/13112, as proposed by the Financial Creditor as Resolution Professional under Section 97 of the Code. The Resolution Professional is directed to examine the present application under Section 97 of the Code and after examination of the application furnish his report with regard to the acceptance of the same by this Authority within 10 days from today.
It is further confirmed that interim moratorium in terms of Section 96 of the IBC, 2016 has commenced from the date of application. Section 96 of the Code is reproduced below:
Interim moratorium - (1) When an application is filed under Section 94 or Section 95-
(a)an 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 proceeding 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 all 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 present application stands disposed of to the extent as indicated above.
List the matter after three weeks for further consideration on 28.02.2022.