2021 (11) TMI 992 - Tri - Insolvency and Bankruptcy

Tribunal appoints Resolution Professional for Personal Guarantor in Insolvency Process

The Tribunal considered the Application to initiate Insolvency Resolution Process against a Personal Guarantor, examined the Limitation issue, and ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - default made against the Credit facilities extended by the Banks - Personal Guarantor - existence of debt and dispute or not - HELD THAT:- In view of the clauses of the Deed of personal Guarantee, it is stated that the demand of the Respondent Bank is invoked and the continuous Deed of personal Guarantee executed by the Applicant is well within limitation and not barred. It is further averred by the Applicant/Debtor that no Application under this Chapter has been admitted in respect of the Applicant/Debtor during the period of 12 months preceding the date of submission of this Application. The Application under consideration is in the prescribed Form and contains the required details. Thus, prima facie the requirements of Section 94 are fulfilled. The Applicant or his Counsel and the Registry/Court Officer are directed to serve the copy of this Order along with copy of the Application and documents immediately on the Resolution Professional so appointed by all modes for information and compliance - List the matter on 15.12.2021. Issues:- Application for initiating Insolvency Resolution Process against a Personal Guarantor- Invocation of guarantee by the Union Bank of India- Examination of the point of Limitation- Appointment of Resolution ProfessionalAnalysis:1. Application for Insolvency Resolution Process: The Application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016 seeks to initiate the Insolvency Resolution Process against the Applicant, who is the Personal Guarantor of the Union Bank of India and other Banks in relation to the default made against the Credit facilities extended to the Corporate Debtor. The Applicant has provided a list of Creditors and the total recoverable amount, along with the Deed of personal Guarantee executed between the Applicant and the Union Bank of India.2. Invocation of Guarantee: The Union Bank of India invoked the guarantee by issuing a Demand Notice, and the Corporate Insolvency Resolution Process has been initiated against the Corporate Debtor. The Respondent Bank has submitted written submissions stating the details of the credit facilities availed by the Corporate Debtor and the Guarantor's obligations under the Guarantee Deed.3. Examination of Limitation: The Adjudicating Authority directed the Applicant to convince on the point of Limitation. The Union Bank of India argued that the continuous Deed of personal Guarantee executed by the Applicant is within limitation and not barred, citing specific clauses from the Guarantee Deeds to support their position.4. Appointment of Resolution Professional: The Applicant proposed the name of a Resolution Professional, Mr. Vikram Vishal Minnas, for appointment, who has been accepted and appointed by the Authority. The Resolution Professional is tasked with examining the Application, making recommendations for acceptance or rejection, and exercising powers under Section 99 of the IBC, 2016 within the stipulated time.In conclusion, the Tribunal has considered the Application for initiating the Insolvency Resolution Process against the Personal Guarantor, examined the point of Limitation, and appointed a Resolution Professional to oversee the process. The invocation of the guarantee by the Union Bank of India and the obligations under the Guarantee Deed have been key factors in the decision-making process. The Resolution Professional is expected to fulfill the duties outlined under the IBC, 2016 and provide recommendations based on a thorough examination of the Application.