Decree against personal guarantor provides fresh 3-year limitation; Form B notice does not invoke guarantee; Covid exclusion applies correctly; case remanded to assess acknowledgments and claims for limitation extension.

J U D G M E N T

(Hybrid Mode)

[Per: Justice Mohd. Faiz Alam Khan, Member (Judicial)]

1.Both above placed appeals are connected with each other and the issue involved in both the appeals is identical, therefore for the sake of convenience and for the purpose of appreciation of evidence, both these appeals are being disposed of by passing this common judgment.

Facts of CA (AT) (Ins) No. 621 of 2025-

2. The instant appeal has been preferred by the appellant who is the personal guarantor to Palavi Synthetics Pvt. Ltd. (Principal Borrower/CD) which had availed various financial facilities from Sarvodaya Sahakari Bank Ltd. (SSBL) against the impugned judgment dated 25.02.2025, passed by the National Company Law Tribunal, Ahmedabad, Bench –I (Adjudicating Authority) in CP (IB) No. 249/AHM/2024 with IA No. 1563 of 2024 whereby the insolvency process has been initiated against the appellant.

3. Factual matrix with regard to this appeal is in terms that Respondent SSBL granted financial facilities to Palavi Synthetics Pvt. Ltd. (CD)/Principal Borrower by entering into various hypothecation agreement for goods against which the appellant extended personal guarantee vide Guarantee Deed dated 05.09.2012, 21.02.2013, 22.10.2013 and 23.04.2015 respectively.

4. It is also evident that the Principal Borrower defaulted in its financial obligations with regard to the loan account which was classified as Non- Performing Asset (NPA) by the Respondent on 30.07.2016 and thereafter on an application filed by an operational creditor the CIRP was initiated against the Principal Borrower vide order dated 23.01.2020 passed in Insolvency Petition No. 225 of 2019.

5. It is further reflected that since no resolution was achieved with regard to the CD, the liquidation process was initiated against the Principal Borrower/CD vide order dated 13.04.2021 which was followed up by a dissolution order dated 13.07.2022 and the CD stands dissolved.

6. It is also reflected that subsequent to the classification of the loan account of the CD as NPA, Respondent–SSBL invoked the personal guarantee advanced by the appellant on 11.08.2016, and thereafter on 24.10.2016 SSBL filed a Summary Suit No. 144 of 2016 under Section 99 (4) of the Gujarat Co-operative Society Act, 1961 and by way of order passed therein on 15.09.2017 the same was decreed and Ld. Joint Registrar Board of Nominees Surat directed repayment of Rs. 2,88,65,468.35/- with 13% compound interest.

7. It is further reflected that on 01.07.2022, the Respondent-SSBL issued a demand notice (form B) under Section 95 (4) (b) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Rule 7 (1) of the Insolvency and Bankruptcy Code, 2016, (Code) application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantor to (Corporate Debtor) Rules, 2019 herein after referred to as (PG to CD Rules 2019), seeking payment of Rs. 44,831,658.35/- and thereafter an application under Section 95 of the Code was filed before Ld. Adjudicating Authority for initiation of Insolvency Resolution Process against