The Corporate Debtor, M/s Kut Energy Private Limited as Borrower, has been availing various loan/credit facilities from the Central Bank of India “Applicant Bank” from time to time. Mr. Amit Kumar Modi, one of the Directors of the Corporate Debtor had given his personal guarantees in respect of the credit/loan facilities granted to Corporate Debtor by the Applicant Bank.
CIRP in relation to the Corporate Debtor has been initiated by order of this Hon'ble Adjudicating Authority dated 07.10.2019, where the claim of the Applicant against the Corporate Debtor has been admitted. ince the Outstanding debt was not repaid by the Respondent, the Applicant further served a Demand Notice dated 07.10.2020 under Section 95(4) (b) of the IB Code, 2020 underRule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process of Personnel Guarantors to Corporate Persons) Rules, 2019 on the Respondent demanding the Payment of the unpaid debt in default.
The Respondent despite having served with the Demand Notice didn't pay the outstanding amount within a period of fourteen days from the date of service of Notice of Demand. The Applicant Creditor has in view of the above facts, approached this Hon'ble Adjudicating Authority seeking initiation of Insolvency Resolution Process against the Respondent/ Personnel Guarantor in terms of the Insolvency and Bankruptcy Code, 2016 under Section 95(1) of the Code through the Resolution Professional.
A Demand Notice dated 07.10.2020 under Section 95(4)(b) of the Code, 2016 was issued by Central Bank of India (hereinafter referred to as ‘Creditor’ and/or ‘Applicant’), to Sh. Amit Kumar Modi (Personal Guarantor) in Form B of Personal Insolvency Rules calling upon the Personal Guarantor to pay the liability accruing pursuant to invocation of Corporate Guarantee executed in respect of Corporate Debtor, which was duly served upon the Personal Guarantor. However, no reply was received by the Central Bank of India to the said notice within 14 days as per the Rules.
In terms of Section 60(1) of Insolvency and Bankruptcy Code, 2016 read with Rule 3(l)(a) of Personal Insolvency Rules, Hon’ble Adjudicating Authority, in relation to Insolvency Resolution and Liquidation of Corporate Persons including Corporate Debtors and Personal Guarantors thereof shall be National Company Law Tribunal having territorial Jurisdiction over where the registered office of the Corporate Debtor is located. The registered office of M/s Kut Energy Private Limited - Corporate Debtor is situated within the territorial jurisdiction of this Hon’ble Adjudicating Authority. Further, Section 60(2) of the Code provides that the application to initiate insolvency resolution process against the Personal Guarantor will be before the Adjudicating Authority, where the Corporate Insolvency Resolution Process has been conducted. Thus, the jurisdiction for adjudication of present application for initiation of Insolvency Resolution Process under Section 95 of the Code, 2016 is within the territorial jurisdiction of this Hon’ble National Company Law Tribunal, Chandigarh Bench, Chandigarh.
That in view of the default on the part of the Personal Guarantor, the Respondent herein, towards his obligation, the Financial Creditor, Central Bank of India filed a Petition captioned as Central Bank of India Versus Mr. Amit Kumar Modi U/s 95 of the Insolvency and Bankruptcy Code, 2016 bearing C.P. (IB) No. 270/Chd/HP/2020 before the Hon’ble NCLT, Chandigarh Bench on 02.11.2020.
That upon filing of the aforesaid petition U/s 95 of the Insolvency and Bankruptcy Code,2016 (“Code”), the Interim Moratorium commenced under section 96(1)(a) of the Code, from the date of filing of the said Petition i.e., 03.08.2021, wherein any legal action or proceeding pending in respect of any debt shall be deemed to have been stayed.
That the Hon'ble Adjudicating Authority vide order dated 01.03.2024 directed that the Creditor has been able to establish the ‘debt’ and ‘default’ beyond doubt in respect of the Guarantee given by the Personal Guarantor therefore accepted the report submitted by the Resolution Professional in terms of the provisions of Section 99 of the IBC, 2016 and admit the C.P. (IB) No. 270/Chd/HP/2020 filed by the Creditor.
As a sequel to the admission of the present application, a moratorium under Section 101 of IBC, 2016 commenced in relation to all the debts of the Respondent/Personal Guarantor.
In furtherance of the directions issued by the AA in the aforesaid order and in compliance of Section 102 of the Code, the directions issued by Hon'ble NCLT vide order dated 01.03.2024 (Order served to RP on 13.03.2024), the RP has issued the public notice on 14.03.2024 inviting claims from all creditors within 21 days of such issue. The copy of the said Public Notice has been uploaded on the webpage of the Personal Guarantor.