NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Insolvency) No. 1228 of 2024 & I.A. No. 4411, 4412 of 2024 [Arising out of the Impugned Order dated 22.03.2024 passed by the National Company Law Tribunal, New Delhi Bench (Court-II) in IA-

1331/2022 in C.P.(IB) No. 489(PB)/2021]

In the matter of:

Sri Vibu Venkatsubramanian Aged about 43 years, having its residence at Flat no. 2A, Second floor, Old no. 63, New No. 123, Orcahrd Court, Pasumpon Muthuramlinga, Thevar Road, R.A. Puram, Chennai-600028.

... Appellant Versus

1. State Bank of India Having its office at Stressed Assets Management Branch-I, 12th Floor, Jawahar Vyapar Bhavan, STC Building, 1 Tolstoy Marg, Janpath, New Delhi-110001.

Through Resolution Professional Shri Chanchal Dua ARCK Resolution Professionals LLP 409, Ansal Bhawan, 16, K.G. Marg (Connaught Place), New Delhi- 110001.

2. ARCK Resolution Professional LLP

409, Ansal Bhawan, 16, K.G. Marg (Connaught Place), New Delhi- 110001.

... Respondents Present:

For Appellant : Ms. Pooja Mehra Saigal, Sr. Advocate with Mr. Ankit Mittal & Mr. Nivesh Dixit, Advocates For Respondents : Mr. Bheem Sain Jain, Advocate Mr. Chanchal Dua, RP in person.

Mr. Ashish Verma, Mr. Nikhil Thakur, Advocates for R-2

J U D G M E N T

(Hybrid Mode)

[Per: Ajai Das Mehrotra, Member (Technical)]

The Appellant is Personal Guarantor (in short ‘PG’) of loan taken by the Corporate Debtor, M/s Global Infonet Distribution Private Ltd. (In short ‘GIDPL’). The present appeal has been filed against the order dated 22.03.2024 of NCLT, Principal Bench, Court-II, New Delhi wherein the report of the Resolution Professional under Section 99 of Insolvency and Bankruptcy Code, 2016 (in short ‘IBC, 2016’) filed in CP (IB)-489(PB)/2021 in IA No. 1331 of 2021 recommending initiation of insolvency was taken on record and the insolvency resolution process in respect of the Personal Guarantor/Appellant was instituted with immediate effect.

2. The brief facts of this case as noted in the order dated 22.03.2024 of Ld.

NCLT are as under:

i. The main petition CP (IB)-489(PB)/2021 was filed by the State Bank of India (hereinafter referred to as the ‘Creditor’) against the Personal Guarantor under Section 95 of IBC, 2016 for initiating insolvency resolution process against the Personal Guarantor.

ii. Vide order dated 23.02.2022, the Adjudicating Authority appointed Shri Chanchal Dua as the Resolution Professional of the Personal Guarantor and directed him to file report under Section 99 of the IBC, 2016.

iii. The Resolution Professional submitted that the insolvency application is in the requisite form, supported by requisite fee and documents and meets the requirements set out in Section 95 of the IBC, 2016.

iv. The Corporate Debtor had availed credit/loan facilities to the tune of Rs. 42 crores from the State Bank of India and had executed various loan and security documents on 25.09.2012.

v. On 06.04.2018, the State Bank of India renewed the credit facilities through fresh sanction letter. The Corporate Debtor admitted its liability by executing a revival letter. Another Financial Creditor, namely, M/s IBM India Pvt. Ltd. filed application under Section 7 of the IBC, 2016 against the Corporate Debtor which was admitted vide order dated 03.03.2020 and Corporate Insolvency Resolution Profess (hereinafter referred to as the ‘CIRP’) was initiated against the Corporate Debtor, GIDPL.

vi. A demand notice in Form-B, under Rule 7(1) of Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process of Personal Guarantors to Corporate Debtor) Rules, 2019 was issued by the Financial Creditor, the State Bank of India to the Personal Guarantor in respect of unpaid debt due from M/s GIDPL. Despite receipt of notice dated 24.06.2021, the Personal Guarantor failed to make payment.

vii. The Ld. NCLT vide the impugned order held that the application under Section 95 of IBC is within limitation and that the Personal Guarantor had agreed t