TaxTMI 
TaxTMI 
2025 (6) TMI 1098
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....Appellant has sought a condonation of 26 days of delay, which has chanced in re-filing the Appeal. After having heard the Ld. Counsel for the Appellant on the Condone Delay Application in re-filing of the Appeal and being satisfied with the reasons given therein, besides the fact that since the delay in re-filing is an exclusive aspect between the Appellant and this Tribunal, a pragmatic view has to be taken, thus the delay of 26 days in re-filing which has chanced in preferring the Appeal would stand condoned. Accordingly, IA No. 666 / 2025, would stand allowed. 4. In IA No. 668 / 2025, the Appellant has sought a leave to file the Appeal. This Tribunal is conscious of the fact that, the instant Appeal has been filed under Section 61 of the I & B Code, 2016, which provides for preference of an Appeal, by `any aggrieved person'', owing to the ratio laid down by the Principal Bench in its Judgment dated 14.07.2023 in Company Appeal (AT) (INS) Nos. 130 & 132 / 2023, which has further elaborated the provision as who is aggrieved by an order of Ld. Adjudicating Authority can file an Appeal; no independent Application for leave to file an Appeal is required to be filed. Thus, this appli....
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.... Ahmed, the Appellants in Company Appeal (AT) (CH) (INS) Nos. 234 & 236 of 2025 respectively executed a Deed of Guarantee with the aforesaid Trustee Company Limited on 26.04.2017. 9. In 2018, M/s. Saravana Distributors, had filed a Company Petition being CP (IB) / 68 / BB / 2018, as against the Corporate Debtor ``Scotts Garments Limited'' u/s. 9 of I & B Code, 2016, seeking to initiate CIRP proceedings against the Corporate Debtor. Those proceedings stood allowed and the Scotts Garments Limited, was directed to be admitted into the CIRP proceedings, on 13.08.2018. 10. Simultaneously, the State Bank of India along with Canara Bank and IDBI Bank initiated a proceeding under Section 19 of the DRT Act on 23.05.2019 against M/s. Scotts Garments Limited and its Guarantors which was inclusive of the Appellant in O.A. No. 1218 / 2019, before DRT - II, Bengaluru. Further, State Bank of India issued the Demand Notice (Form B) on 21.09.2020, calling upon the Appellant to fulfil his financial liabilities payable towards the Financial Creditors. The Appellant issued a response by way of a reply on 08.10.2020 to the aforesaid Demand Notice. Being not satisfied with the said response by the App....
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....nal in Company Appeal (AT) (CH) (INS) No. 231 / 2025 and the Order in IA No. 8 / 2023 has been affirmed with the dismissal of the aforesaid Company Appeal. 14. Simultaneously, the Ld. Adjudicating Authority took up for consideration IA No. 219 / 2024, took on record the statement of objection filed by the Personal Guarantor / the Appellant herein on 24.05.2024, directed the Respondents to file their written submissions on 22.10.2024 and upon detailed consideration of pleadings thus exchanged, passed the Impugned Order, permitting the Financial Creditor to file for Bankruptcy as against the Personal Guarantor / Appellant, particularly in the light of the implications of the provisions contained under Section 115 (2) of the I & B Code, 2016, which provides that it is only when the Ld. Adjudicating Authority rejects the Repayment Plan under Section 114, the Debtors and the Creditors shall be entitled to file an Application Bankruptcy by invoking the provisions contained under Chapter IV. 15. The Ld. Adjudicating Authority has passed the instant Order in IA No. 219 / 2024 observing thereof that, as per Section 105 of the Code, the Debtor / Personal Guarantor was required to submit th....
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....ction 2 of section 115; or (c) where an order has been passed by an Adjudicating Authority under sub-section 3 of section 118.'' 18. If the provisions contained under Section 121 are taken into consideration, they stipulate the circumstances under which filing of an Application for Bankruptcy of a Debtor, by a Creditor individually or jointly can be permitted subject to the exceptions that had been carved out therein. The circumstances detailed therein is inclusive of an Order passed by Ld. Adjudicating Authority under the provisions contained under Section 115 (2) of I & B Code, 2016. 19. In the instant case, the Ld. Adjudicating Authority has taken the position that, in the absence of submission of the Repayment Plan by the Personal Guarantor, there will be a deemed rejection of the Repayment Plan under Section 114 r/w Section 115 (2) of the I & B Code, 2016, and if that be so, the pleading by the Appellant that the Impugned Order is violative of Section 121 (1) will not be maintainable. The process contemplated under Sub-Clause (b) of Sub-Section 1 of Section 121, contemplates that rejection of a Repayment Plan under Section 114, would attract Section 115 (2) of the I & B C....