9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 83 - Tri - Insolvency and BankruptcyMaintainability of application - initiatiion of CIRP - Seeking to initiate CIRP, against Mr. Jai Kumar Goyal, one of the Directors of M/s. BRG Iron Steel Co. Pvt. Ltd., who is the Personal Guarantor of Central Bank of India, in relation to the credit facilities extended by the Bank in favour of BRG - Financial Creditors - existence of debt and dispute or not - HELD THAT - There does not appear to be any request of the Resolution Professional for issuance of the instructions for the purpose of conducting negotiations between the debtor and creditors for arriving at the repayment plan. Therefore, based on the reasons recorded in the report submitted by the Resolution Professional, the application, filed under the provisions of section 95 of the IBC, 2016 is hereby admitted under section 100 of the IBC, 2016. The Insolvency Resolution Process is initiated against the respondent and the moratorium is declared, which begins with the date of admission of the application and shall cease to have effect at the end of the period of 180 days, as provided u/s. 101 of IBC, 2016 or until this Adjudicating Authority approves the repayment plan under sub-section (1) of section 114 of the Code. The Insolvency Resolution Process stands initiated against the debtor/Personal Guarantor - Application admitted - moratorium declared.
Issues:
Initiation of Insolvency Resolution Process against a Personal Guarantor under the Insolvency and Bankruptcy Code, 2016. Analysis: The Tribunal, in this judgment, considered an application filed under section 95(1) read with sections 96, 97, 99, and 100 of the Insolvency and Bankruptcy Code, 2016, along with rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The application sought to initiate the Insolvency Resolution Process against a Director who was a Personal Guarantor of a Corporate Debtor in relation to credit facilities extended by a Bank. The Adjudicating Authority appointed a Resolution Professional who recommended the admission of the application based on the default by the debtor and non-payment of the claim amount by the personal guarantor. The Tribunal admitted the application under section 100 of the IBC, 2016, initiating the Insolvency Resolution Process against the respondent and declaring a moratorium. Subsequently, the Resolution Professional was directed to publish a public notice inviting claims from all creditors within a specified period. The Resolution Professional was tasked with preparing a list of creditors and collaborating with the personal guarantor to formulate a repayment plan, including payment of fees. The repayment plan had to be submitted to the Adjudicating Authority within a stipulated timeframe. The judgment outlined the procedure for summoning a meeting of creditors if deemed necessary by the Resolution Professional, emphasizing compliance with the Code of Conduct provided under the IBC, 2016. In conclusion, the Tribunal admitted the application, initiating the Insolvency Resolution Process against the debtor/Personal Guarantor, and scheduled the filing of periodical reports. The Registry was directed to disseminate copies of the order to all relevant parties and their legal counsel promptly. The judgment also allowed for the issuance of a Certified Copy upon completion of formalities.
|
