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TMI Blog2021 (4) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 14 days notice, servicing of the Application to the Debtor etc. Application disposed off. - I. A. No. 12 of 2021 In C. P. (IB) No. 05/GB/2018 - - - Dated:- 7-4-2021 - Hon ble Shri H. V. Subba Rao , Member ( J ) And Hon ble Shri Prasanta Kumar Mohanty , Member ( T ) None present for applicant None present for respondent ORDER [ Per Se: Hon ble Shri Prasanta Kumar Mohanty , Member ( T ) ] 1. This I.A. has been filed by the Applicant seeking appropriate orders for initiating bankruptcy process against the Respondents/Personal Guarantors. The Respondents have defaulted in repaying the debt under the Contract of Guarantee and is liable to be proceeded against under Section 60 (2) of the Insolvency and Bankruptcy Code, 2016. The facts of the case are as follows: 2. Bank of Baroda, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its registered office at Baroda House, P.B.No.506, Mandvi, Vadodora, Gujarat 390006 and also at Gangtok Branch, Namnang Road, Gangtok 737101. The Applicant is carrying on the business of banking in India as a scheduled commercial bank under Reserve Bank o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o produce the copy of the extract of the resolution passed by the board of directors of the Corporate Debtor in their meeting on May 25, 2020 if the same is necessary at the time of hearing. 6. It is submitted that vide a Loan Agreement dated December 02, 2012 the Applicant agreed to grant credit facilities in an aggregate sum of INR 10.33 crores (Rupees Ten Crores Thirty Three Lacs only) to the Corporate Debtor. In consideration of the Applicant having agreed to grant and/or granting credit facilities to the Corporate Debtor, the Corporate Debtor executed a Letter of Set off and Lien against the fixed deposit in favour of the Applicant, Letter of Continuing Security, Demand Promissory Note as a continuing security a Deed of Hypothecation, hypothecating and pari passu floating charges in all present and future, current assets, fixed assets of the Corporate Debtor in favour of the Applicant. 7. Further, with the purpose of securing the subject credit facilities extended to the Corporate Debtor in terms of the Loan Agreement dated 02.12.2010 the Respondent No.1 and 2 executed three Letters of guarantees, all dated 12.06.2013. The copies of the Letters of Personal Guarantee, all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the ability of the Corporate Debtor is in doubt and therefore liquidation would be the best recourse in order to achieve maximization of the assets. Accordingly, the Corporate Debtor went into the liquidation process on 06.09.2019. 14. As a result of the failure of the Corporate Debtor to pay the outstanding dues, the guarantees furnished by the Respondent No.1 and 2 were invoked by the Applicant vide its letters in the form of Form B dated 08.09.2020 under the Insolvency and Bankruptcy (Application to Adjudication Authority for Insolvency Resolution Process of Personal Guarantors to Corporate Debtors) Rules, 2019 to the Respondent No.1 and 2. However, in spite of receipt of the notice, the Respondents have failed to make payments against the outstanding dues of the Applicant. Copies of Applicant s demand notices in the form of Form B dated 08,.09.2020 invoking the personal guarantees are annexed herewith and marked collectively as Annexure D . 15. Vide various agreements/correspondence executed by the Corporate Debtor as annexed above, the Corporate Debtor assured, admitted and acknowledged its liabilities under the Loan Agreement to the Applicant. Hence such commitment m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch with copies to Applicant so that further orders may be made for initiation of insolvency proceedings. 21. The Applicant states that immovable properties more particularly described above remains mortgaged with the Applicant as security for payment of the applicant s claim herein. 22. The Applicant apprehends that the Respondents may be depleting and disposing of their properties mortgaged with the Applicant Bank and unless an IRP is appointed and moratorium is declared, Applicant would not be able to initiate the resolution process successfully or recover its claims. 23. The Applicant apprehends that Respondents may move away and permanently leave the jurisdiction of the Tribunal with the intention of escaping their liability which may cause severe damage and prejudice to the Applicant making it impossible for the Applicant to recover its dues. The Applicant therefore prays for a direction on the Respondents to submit their passports before this Tribunal to be retained till the disposal of the Application of direction on the said Respondents to seek leave of the Tribunal every time they leave the territorial jurisdiction of the Tribunal. 24. It is just and convenien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner in a firm, any other application against another partner in the same firm shall be presented in or transferred to the Adjudicating Authority in which the first mentioned application is pending for adjudication and such directions for consolidating the proceedings under the applications as it thinks just. (4) An application under sub-sect8ion (1) shall be accompanied with details and documents relating to─ (a) the debts owed by the debtor to the creditor or creditors submitting the application for insolvency resolution process as on the date of application; (b) the failure by the debtor to pay the debt within a period of fourteen days of the service of the notice of demand; and (c) relevant evidence of such default or non-repayment of debt. (5) The creditor shall also provide a copy of the application made under sub-section (1) to the debtor. (6) The application referred to in subsection (a1) shall be in such form and manner and accompanied by such fee as may be prescribed. (7) The details and documents required to be submitted under sub-section (4) shall be such as maybe specified. 3) It is clear that if the FC desires to file an Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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