Mrs. Jyoti Soni

Per: HEMANT KUMAR SARANGI, MEMBER (TECHNICAL)

This is an application filed by Mrs. Jyoti Soni (the “Applicant/Debtor”) under Section 94 (1) of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”), r/w Section 96,97,99 & 100, r/w Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The prayer made is to initiate the Insolvency Resolution Process (“IR Process”) against the Applicant/Debtor, who is the Personal Guarantor of M/s. Bank of India and other Banks, in relation to the default made against the Credit facilities extended by the Bank in favour of M/s Mohan Gems and Jewels Private Limited. (“the Corporate Debtor”)

It is stated by the Applicant that the Corporate Debtor availed the working capital facilities, by executing a Consortium Arrangement dated 05.06.2015, with Bank of India as the lead bank and Corporation Bank (now Union Bank of India), State Bank of Patiala (now State Bank of India) and Bank of Baroda (together referred to as “Lenders”).

It is further stated by the Applicant, that the Corporate Debtor had approached the Lenders for re-structuring of the existing credit facilities, as the operations of the Corporate Debtor had come into strain. It is added that the same was done by the lenders, by way of Funded Working Capital Limits, sanction of Working Capital Term Loan and Working Capital Funded Interest for an amount of Rs 390.85 Crore vide the Restructuring Agreement dated 05.06.2015.

That the Applicant/Debtor stood as a guarantor, to secure due repayment of the credit facilities, disbursed by the Lenders/Consortium, to the Corporate Debtor. That the Applicant has also placed the Deed of Guarantee, executed on 05.06.2015 on record. That the Corporate Debtor could not make the timely re- payment of Loan facility availed due to downfall in the business operations. Therefore, the account of Corporate Debtor was declared as Non-Performing Assets (NPA) on 29.11.2015. in the books of erstwhile State Bank of Patiala (now merged with State Bank of India)

The Applicant has also placed the Deed of Guarantee executed on 05.06.2015 on record. That the Corporate Debtor could not maintain financial discipline with the Lenders, as a result of which Bank of India invoked the Bank Guarantee, for recovery of its dues and issued a notice for sale of assets of the Guarantor on 10.11.2020 under the provisions of SARFAESI Act, 2002.

It is stated by the Applicant that the CIR Process was initiated against the Corporate Debtor vide Order dated 25.09.2018 in C.P. No. 590/PB/2018, by M/s Invent Asset Securitization and Reconstruction Private Limited. Later, the Liquidation proceedings have also been initiated against the Corporate Debtor vide Order dated 09.08.2018 of this Tribunal.

During the course of hearing on 05.03.2021, the Counsel for the Petitioner was asked to file an Affidavit containing declaration regarding her eligibility in terms of Section 94(4) and (5) of IBC 2016. The Ld. Counsel for the Petitioner on 22.03.2021 submitted that the requested averment is already available on the record at Para-4 of Page-7 of the Petition.

It is stated by the Applicant/ Debtor, in the Part III of its application, that it had committed default in re payment of its dues of Rs 6,10,28,91,188/- (Six hundred Ten Crores Twenty-Eight Lakhs, Ninety-One Thousand One Hundred Eighty-Eight). Therefore, we are inclined to initiate proceedings in terms of IBC, 2016.

It is made known to everyone that on filing this Application by the Applicant/Debtor, the interim-moratorium commences as stipulated under Section 96 (1) (a) in relation to all the debts of the personal guarantor and shall cease to have effect on the date of admission of this Application and during the interim- moratorium period, the following are prohibited:

The Applicant/Debtor has proposed the name of Mr. Anil Kumar Singhal, Insolvency Professional, for appointment as Resolution Professional, who has accepted to be appointed and declared that he is eligible to be appointed and that no disciplinary proceedings are pending against him. Therefore, Mr. Anil Kumar Singhal, is appointed as the Resolution Professional, in exercise of the powers conferred under Section 97 of the IBC, 2016, on this Authority, subject to the Regulation 4 (1) and (2) of the Insolvency and bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. The details of the Resolution Professional are as under:

The Resolution Professional shall exercise all the powers, as enumerated under Section 99 of the IBC, 2016, r/w the Rules made thereunder. He is directed to examine the Application and make recommendations, along with the reasons in writing, for acceptance or rejection of this Application, within the stipulated time as envisaged under the provisions of Section 99 of the IBC, 2016. The RP shall give a copy of the report under Sub-Section (7) of Section 99 to the Applicant/Creditor, as soon as the same is filed before this Authority.

The Applicant/Debtor or his Counsel and the Registrar/Court Officer are directed to serve the copy of this Order, along with copy of the Application and documents, immediately on the Resolution Professional so appointed, by all modes for information and compliance.

List the matter on 06.05.2022.

With this order, IA 3387/2021, filed for supply of the documents, has become infructuous.