Mr. Dharmesh R. Chokshi

Mr. Manoj Kumar Mishra, Ld. Counsel for the Petitioner present.

This is a Company Petition filed by Mr. Dharmesh R. Chokshi (“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 sanctioned of loan facilities by the M/s Orbit Ayas Pvt. Ltd. the Revised Sanction letter dated 13.12.2018 from Union Bank of India. That the Union Bank of India further, classified the account of the Corporate Debtor as NPA on 31.01.2020. Meanwhile, on 12.02.2020, Mr. Suraj Jagdish Konungo has filed a company petition u/s 9 of the Code bearing CP-581/2020 against the Corporate Debtor. The matter is presently pending and sub-judice before the Court-II of this Tribunal. The Union Bank of India finally served upon the Corporate Debtor and its Guarantors, including the Applicant, a Demand Notice u/s 13(2) dated 12.07.2022. Consequently, the Union Bank of India was sent possession Notice to the Corporate Debtor and its Guarantors on 27.10.2022. That thus, frustrated with the various issues relating to liability cum personal guarantee and to get away from the same, Mr. Dharmesh Chokshi being the Personal Guarantor of the Corporate Debtor is sincerely willing to undergo Personal insolvency to seek an opportunity to offer a repayment plan to the Union Bank of India subject to its approval. Therefore, on 01.11.2022, the Applicant has filed this petition u/s 94 of the Code, since the Applicant is unable to pay its debt as of now, therefore seek admission for voluntary Personal Insolvency Resolution Process (PIRP).

The Applicant has served a copy of this petition upon the RP of Corporate Debtor as well as Union Bank of India, the Financial Creditor for whom he 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. Mukesh Kumar Jain, Insolvency Resolution Professional having Registration IBBI/IPA-001/IP-P01236/2018-2019/11944; 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 Applicant 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 -

a. any legal action or proceeding pending in respect of any debt shall be deemed to have been stayed; and

b. the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt.

c. List this matter for further consideration on 07.08.2023.