State Bank Of India vs B. Raajarajan

Per: SAMEER KAKAR, MEMBER (TECHNICAL)

This application has been filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against the Personal Guarantors of Gold King Tex India Private Limited & G B Raja Top Weaving (P) Limited , the Corporate Debtor which is under Liquidation.

In so far as Gold King Tex India Private Limited is concerned an order was passed for Commencement of CIRP of the Corporate Debtor by this Tribunal on 25.01.2019 in CP/1211/IB/2018 and Liquidation order was passed by this Tribunal on 03.09.2019 in MA/854/2019. With regard to G B Raja Top Weaving Private Limited an order was passed for commencement of CIRP of the Corporate Debtor on 15.03.2019 in CP/1215/IB/2018 by this Tribunal and Liquidation was ordered on 29.08.2019 in MA/824/2019.

The present application is filed by the State Bank of India, Coimbatore Stressed Assets Management Branch, represented by Assistant General Manager Mr.Murugan, and the verifying affidavit to that effect is placed at Page Nos. 16 -17 of the typed set of the Application.

It is stated in Part – III of the Application that demand was made on the personal guarantor on 17.11.2021. It is also seen from Part – III at Sl. No. 15 of the Application that the Personal Guarantor has executed the Deed of Guarantee on 19.12.2013 & 25.03.2015. All these Deed of guarantees are enclosed along with the typed set filed along with the Application.

The Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 to the Personal Guarantor on 17.11.2021 is also placed on record at Pg. Nos. 127 – 129 and acknowledgement of receipt is placed at Page No. 130.

The date of default as mentioned in the application is 17.04.2016 and the Financial Creditor has also placed on file the Record of Default at Page Nos. 133 to 138 of the typed set. Hence, on this term, the present Petition is filed to initiate a proceeding in terms of Section 95 (1) of the IBC, 2016, against the Respondent herein.

Registry of this NCLT has sent a notice to the Respondent on 23.03.2022. Track Report is available on the file, the said notice was delivered to the Respondent on 31.03.2022. During the hearing, there was no representation on behalf of the Respondent. The Respondent was set ex- parte vide order dated 02.05.2022 and no application was filed for setting aside the said order.

The Hon’ble NCLAT, Principal Bench, in the matter of Mr. Ravi Ajit Kulkarni –Vs- State Bank of India in Company Appeal (AT) (Insolvency) No. 316 of 2021 has held in para 42 that once an Application under Section 95 of IBC, 2016 is filed, the Adjudicating Authority has to act on it, and following principles of natural justice, give limited notice to Personal Guarantor to appear referring to the Interim Moratorium that has commenced as per terms of Section 96 and subsequently proceed to the next stage of appointing Resolution Professional as per Section 97 read with attendant Rules and Regulations.

It can be seen from Part- IV of the Application that one Mrs. Jayashree S Iyer [IBBI/IPA-002/IP/N00741/2018-2019/12211] (email id:[email protected]) has been recommended by the Financial Creditor to be the IRP.

The Financial Creditor is also directed to serve a copy of this Application to the Interim Resolution Professional for preparing the Report under Section 99 of IBC, 2016.

The Resolution Professional is required to examine the Application as set out in Section 97(6) of IBC, 2016 and after examining the Application, as per Section 97(7) of IBC, 2016 the Resolution Professional may recommend for the acceptance or rejection of the Application in his report, within a period of 10 days as contemplated under Section 99(1) of IBC, 2016.

Post this matter on 28.07.2022 for filing of Report by the Interim Resolution Professional.