Madhavi Suhas Doshi

Adv. Aakash Joshi & Adv. Muralidhar Khadilkar i/b Muralidhar Khadilkar, appeared for the Applicant/Personal Guarantor to the Corporate Debtor present.

This is a Company Petition filed by Madhavi Suhas Doshi (“the Applicant / Personal Guarantor”), being the Personal Guarantor to the Corporate Debtor, under Section 94(1) of the Insolvency & Bankruptcy Code, 2016 (IBC) read with Rule 6(1) of the Insolvency and Bankruptcy (Application for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 seeking to initiate Bankruptcy Process against herself.

The Applicant had executed guarantee agreements to secure the loans obtained by the M/s Autocop India Pvt. Ltd. from various banks from time to time. Accordingly, the Applicant as a guarantor on behalf of Autocop India Pvt. Ltd., had entered into various agreements with the said financial institutions/banks and pursuant to the said Agreements, the said financial institutions/banks have sanctioned and disbursed secure/non-secured loan to the Applicant. The Applicant had agreed to repay the said loan amounts along with interest at the agreed rate in equated monthly instalments in case company fails to repay the loan. Autocop India Pvt. Ltd. had repaid almost all the monthly instalments regularly till February 2022. After that, the said company could not pay the monthly instalments due to impact of Covid-19 over the profit of Applicant’s company. Resultantly, Autocop India Pvt. Ltd. suffered huge losses and the Corporate Insolvency Resolution process was initiated against Autocop India Pvt. Ltd. in petition bearing CP(IB)No.2043 (MB)/C-II/2018 vide an order dated 16.03.2022. The Applicant, being the guarantor of the said loans of the Autocop India Pvt. Ltd., is unable to pay the liability arising from guarantee and has submitted that the total liability of the Applicant i.e. Rs.72,81,97,713/- is much greater than the assets of the Applicant.

The Applicant has served a copy of this petition upon the RP of Corporate Debtor as well as Axis Bank, the financial Creditor for whom she is a personal guarantor, in terms of Rule 6(2) of Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019.

The Petition for initiating Insolvency Resolution Process against Personal Guarantor of the Corporate Debtor is complete in all respect. Therefore, this Bench is of the opinion that Resolution Professional is to be appointed in this case and accordingly;

This Bench appoints Mr. Sachin Shrinivas Bhattad, Insolvency Resolution Professional having Registration IBBI/IPA-001/IP-P00680/2017-18/11159); 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.

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 28.06.2023.