2026 (2) TMI 737

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....pellant : Mr. Sumesh Dhawan, Vatsala Kak, Shaurya Shyam, Adv. For the Respondent : Mr. Ankur Mittal, Muskan Jain, Adv. for SBI, Mr. Iswar Mohapatra, Markandey Kr. Singh, Animesh Pandey, Adv. for R1/RP Mr. V.K Sachdeva, Gaurav Goel, Tarlok Singh, Adv. for R3 and 4 ORDER Per: Justice Rakesh Kumar Jain: (Oral) This order shall dispose of three appeals bearing CA (AT) (Ins) No. 1625 of 2024 titled as 'Suyog Jain Vs. Arvind Kumar, Resolution Professional & Ors.' (herein after referred to as the first appeal), CA (AT) (Ins) No. 1626 of 2024 titled as 'Rajinder Singh Gujral Vs. Arvind Kumar, Resolution Professional & Ors.' (herein after referred to as the second appeal) and CA (AT) (Ins) No. 1728 of 2024 titled as 'Vivek Gupta Vs. A....

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....e M/s DPB Antibiotics Pvt. Ltd. was approved by the CoC in its 11th meeting and was further approved by the Tribunal on 12.01.2021. 6. In so far as the present appellants are concerned, they gave personal guarantee qua the credit facility given by the banks to the CD. In so far as the State Bank of India is concerned, outstanding amount of credit facility demanded from the guarantors was Rs. 1,54,88,26,604.50/-, the Indian Bank (earlier Allahabad Bank) outstanding amount of credit facility, demanded from the guarantors, was Rs. 83,10,72,467.80/- and the IDBI Bank outstanding amount of credit facility, demanded from the guarantors, was Rs. 52,78,40,163.00/-. 7. It is not in dispute that all the banks initiated proceedings under the SAR....

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....y the three banks are pending before the DRT, therefore, in view of the decision of the Hon'ble Supreme Court in the case of Sesh Nath Singh & Anr. Vs. Baidyabai Sheoraphuli Co-operative Bank Ltd. & Anr., (2021) 7 SCC 313 the reverse finding may be recorded. In this regard, he has referred to paras 81 to 85 which are also reproduced as under:- "83. To cite another example, if civil proceedings were initiated in a wrong forum in good faith and prosecuted with due diligence, but after the proceedings ended, time was wasted by making frivolous, meritless applications, the applicant would only be entitled to exclusion of time from the date of initiation till the end of the proceedings initiated in good faith and bona fide and pursued d....

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....even took possession of the assets, until the entire proceedings were stayed by the High Court by its order dated 24th July 2017. The proceedings under Section 7 of the IBC were initiated on 10 th July 2018. 87. In our view, since the proceedings in the High Court were still pending on the date of filing of the application under Section 7 of the IBC in the NCLT, the entire period after the initiation of proceedings under the SARFAESI Act could be excluded. If the period from the date of institution of the proceedings under the SARFAESI Act till the date of filing of the application under Section 7 of the IBC in the NCLT is excluded, the application in the NCLT is well within the limitation of three years. Even if the period between....