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TMI Blog2022 (7) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... ting Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019 (herein after referred to as Personal Guarantors Insolvency Rules, 2019), seeking an order for initiation of the Insolvency Resolution Process ("IR Process") against him who is the Personal Guarantor of M/s. Servomax India Private Limited. 2. Averments in brief: a. The Petitioner is one of the main promoter and also one of the Directors of Servomax India Private Limited i.e. Respondent No. 2. The Corporate debtors have availed loans from the financial creditor from time to time from 1982 till 2013 and had defaulted in repayment of loans to the banks and consequently declared as NPA by Respondent No. 1 and Respondent No. 3 banks. b. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admission of the petition filed under Section 94 of the Code. 3. Therefore, in the above backdrop, the point that emerges for consideration of the Tribunal is, Whether Insolvency Resolution Process can be ordered against the Petitioner? 4. We have heard Shri K. Purnachandra Rao, Learned Counsel for the Personal Guarantor and the RP and perused the material on record. POINT Whether Insolvency Resolution Process can be ordered against the Personal Guarantor? 5. The Petitioner has admitted the default in repayments of debt who has given personal guarantee to the Respondent No. 2 & 5. It is stated that, as per the petition, the outstanding debt payable by the Corporate Debtor is Rs. 735.01 crores. In this backdrop the RP recommended for ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin fourteen days from the date of submission of the report under section 99 pass an order either admitting or rejecting the application referred to in section 94 or 95, as the case may be. (2) Where the Adjudicating Authority admits an application under sub-section (1), it may, on the request of the resolution professional, issue instructions for the purpose of conducting negotiations between the debtor and creditors and for arriving at a repayment plan. (3) The Adjudicating Authority shall provide a copy of the order passed under sub-section (1) along with the report of the resolution professional and the application referred to in section 94 or 95, as the case may be, to the creditors within seven days from the date of the said ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CP (IB) No. 51/94(1) of IBC/HDB/2021 filed under the provisions of Section 94 of IBC, 2016 is hereby admitted. (2) Consequently, the Insolvency Resolution Process is hereby initiated against the Personal Guarantor Ramachander Rao Bikumalla and the moratorium is declared, which begins with effect from the date of admission of the petition and shall cease to have effect at the end of the period of 180 days, as provided under Section 101 of IBC, 2016. During the moratorium period; (a) Any pending legal action or proceeding in respect of any debt shall be deemed to have been stayed; (b) The creditors shall not initiate any legal action or legal proceedings in respect of any debt; and (c) the debtor shall not transfer, alienate, encumbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all prepare, in consultation with the resolution professional, a repayment plan containing a proposal to the creditors for restructuring of her debts or affairs as provided under Section 105 which shall include the provisions for payment of fee to the Resolution Professional. The Resolution Professional shall submit the repayment plan along with his report on the plan to this Adjudicating Authority within a period of 21 days from the last date of submission of claims as provided under Section 106. (5) In case the Resolution Professional recommends that a meeting of the creditors is not required to be summoned, he shall record the reasons thereof. If the Resolution Professional is of the opinion that the meeting of creditors should be summ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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