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2022 (3) TMI 280 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Personal Guarantor to the Corporate Debtor - existence of debt and dispute or not - service of demand notice - HELD THAT - The Applicant had received a reply dated 09.07.2021, from the Personal Guarantor, being Mr. Vibu Venkat Subramanian, to the Demand Notice dated 24.06.2021. However, despite receipt of the notice dated 24.06.2021, the Personal Guarantor failed to make payment within 14 days from the date of receipt of the Demand Notice which falls on 12.07.2021. It is pertinent to mention that as per part-III of Form-C, the total debt from the personal guarantor, by way of personal guarantee given to M/s. State Bank of India, including interest, amounts to ₹ 43,38,58,364.80/-. Hence, the application is in order for proceeding as per the code. Application admitted - moratorium declared - List the matter for further proceedings in the case on 23.03.2022.
Issues involved:
1. Application filed by the Financial Creditor under Section 95 of the Insolvency and Bankruptcy Code, 2016 against the Personal Guarantor of the Corporate Debtor for outstanding debt. 2. Default in payment by the Corporate Debtor leading to NPA declaration. 3. Issuance of Demand Notice to the Personal Guarantor and failure to make payment. 4. Appointment of Resolution Professional and confirmation of the appointment. Detailed Analysis: 1. The application was filed by the Financial Creditor, M/s. State Bank of India, seeking to initiate the insolvency resolution process against the Personal Guarantor of the Corporate Debtor, 'M/s. Global Infonet Distribution Private Limited', for an outstanding debt of Rupees Forty Three Crores Thirty Eight Lakhs Fifty Eight Thousand Three Hundred Sixty Four and Eighty Paise. The application was made under Section 95 of the Insolvency and Bankruptcy Code, 2016, through the Resolution Professional appointed by the Financial Creditor. 2. The Corporate Debtor had availed credit/loan facilities amounting to Rupees Forty-Two Crores on 07.11.2013. The Corporate Debtor and its guarantors had executed various loan and security documents with the Financial Creditor on 25.09.2012. Due to a default in payment, the account of the Corporate Debtor was declared as Non-Performing Asset (NPA) on 28.10.2018. Subsequently, a fresh sanction letter was prepared for the renewal of credit facilities, and the Corporate Debtor admitted its liability towards the Applicant Bank. 3. A Demand Notice was issued to the Personal Guarantor in respect of the unpaid debt due from the Corporate Debtor. Despite receiving the notice, the Personal Guarantor failed to make the payment within the stipulated time, leading to the application for insolvency resolution against the Personal Guarantor. 4. The Resolution Professional, Mr. Chanchal Dua, was appointed in this matter after filing an affidavit stating his competence and the absence of pending disciplinary proceedings against him. The Resolution Professional was directed to exercise all powers as per Section 99 of the Insolvency and Bankruptcy Code, make recommendations for the acceptance or rejection of the application, and provide a copy of the report to the Applicant/Creditor and the Personal Guarantor. The matter was listed for further proceedings on 23.03.2022.
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