State Bank Of India vs K Subburaj

Per: Justice (Retd.) S. RAMATHILAGAM, MEMBER (JUDICIAL)

Under Consideration is an Application filed under Section 95 (1) of the Insolvency and Bankruptcy Code, 2016 against the personal guarantor Mr. K Subburaj of M/s. Cethar Limited, the Corporate Debtor against which CIRP was initiated vide order dated 25.04.2018.

The present application is filed by the Financial Creditor Assistant General Manager, State Bank of India, Stressed Assets Management Branch, Chennai.

The date of default as stated in the Application is 29.09.2014 The Agreements of Guarantee executed by the Personal Guarantor is placed between pg. no. 14-18 of 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 dated 19.09.2020 is placed in the typed set filed along with the application. Hence, on this term, the present Petition is filed to initiate proceeding in terms of Section 95 (1) of the IBC, 2016, against the Respondent herein.

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 in para 42 has held 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.

Accordingly, upon verification of disciplinary status with the IBBI user portal we hereby appoint Mr. S. KANNAN having registration number: IBBI/IPA-001/IP-P00755/2017-2018/11287 (email:- [email protected]) as the Interim Resolution Professional in respect of the Personal Guarantor whose particulars and declaration is in part IV of the application, from which it is evident that the said IRP is the applicant herein.

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 Interim 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 Interim 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 (18^{\text{th}}) April, 2022 for filing of Report by the Interim Resolution Professional.