TaxTMI 
TaxTMI 
2019 (9) TMI 1431
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....e., on 06.08.2019 & 20.08.2019 and matter was reserved for orders on 20.08.2019. 2. Pursuant to conclusion of arguments and upon matter being reserved for orders, two persons namely, Shri. L. Sridhar, R/o. Plot No. 1155, road No.54, Jubilee Hills, Hyderabad - 500033, TG and Shri. L. Rajagopal, R/o. D.No.32-2-10C, Madhu Nagar, Mogalrajpuram, Vijaywada - 520010, AP have filed four applications bearing IA No.751/2019, 752/2019, 753/2019 & 754/2019 on 27.08.2019 as under:- IA No.751/2019 i. The present IA No.751/2019 is filed inter alia praying this Adjudicating Authority to reopen the CP(IB)No.420/7/HDB/2019, which was reserved for orders on 20.08.2019, for further hearing on the company applications filed by the Applicant herei....
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....t of the Corporate Debtor from its other assets and business and keep the same out of CIRP, thus ensuring that Project Lenders and the Applicants herein are not prejudiced as a result of the Petition filed by the financial Creditor; and b) Pass necessary directions to protect the Applicants under IBC, and otherwise in law by declaring that the corresponding loan is being successfully services, and c) Pass any other and further orders and directions that this Adjudicating Authority may direct in the interest of justice and equity. 3. This Adjudicating Authority upon consideration of the IA No.751/2019 along with IA No.752/2019, 753/2019 & 754/2019 for re-opening the CP(IB)No.420/7/HDB/2018 which was reserved for orders o....
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....ood guarantors is being continually serviced by the Corporate Debtor to their relevant lenders. 8. It is further stated that, Axis Bank is not one of such lenders and therefore, the Applicants have neither given said guarantee in favour of Axis Bank nor have any liability towards any amount that the Corporate Debtor may owe to the Financial Creditor. Nevertheless, in view of the Petition for Resolution U/s.7 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, which is pending adjudication before this Adjudicating Authority may gravely prejudice Applicants by exposing them to recovery proceedings by lenders of the Corporate Debtor, despite continued service of the relevant loans as well as disqualification from doing....
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....at the default has not been occurred in the sense that the debt is not due. No other person has a right to be heard at the stage admission of the application under Section 7 and 9 of the I&B Code including the 'shareholders' or the 'personal guarantor' etc." 13. Further, referring to provisions of Sec.60(2)(3), the Hon'ble NCLAT has laid down that in view of these provisions an Insolvency Resolution or Bankruptcy Petition can be filed with regard to a 'personal guarantor' of 'Corporate Debtor' before the same Adjudicating Authority where Application against the 'Corporate Debtor' is pending in terms of sub-section(2) of Section 60. In such case 'personal guarantor' may claim his right o....
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.... 17. The two aforesaid objections raised by the senior counsel cannot be accepted in view of established principles of judicial discipline. As held by the Hon'ble Supreme Court in UOI & Others vs. Kamalakshi Finance Corporation Ltd. AIR 1992 SC 711, the principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the sub-ordinate authorities and that utmost regard should be paid by the Adjudicating Authorities and the appellate authorities to the requirements of judicial discipline and the need for giving effect to the orders of higher appellate authorities which are binding on them. 18. Therefore, respectfully following the guidance available in the aforesaid two J....