ORDER

Orders Pronounced, recorded vide separate sheets. In the result, this petition is dismissed.

Sd/- Sd/-

MEMBER (T) MEMBER (J)

Basha IN THE NATIONAL COMPANY LAW TRIBUNAL HYDERABAD BENCH – II CP (IB) No. 314/95/HDB/2022 [ Application under Section 3(1) & Article 55 of Limitation Act and

238 A of the Insolvency & Bankruptcy Code, 2016 read with National Company Law Tribunal Rule – 11]

In the matter of :

Between:

Mr.D.Srinivasa Rao, Personal Guarantor of M/s.Priyaranjani Fibres Limited, D.No.7-1-79/C, Plot No.601, Street No.11, Dharamkaram Road, Ameerpet, Hyderabad 0 500 016.

…Applicant/Personal Guarantor V E R S U S M/s.Stressed Assets Stabilization Fund (SASF), 3^rd Floor, IDBI Towers, WTC Complex, Cuffe Parade, MUMBAI – 400 005.

…Respondent/Financial Creditor Date of Order: 10.01.2024 Coram:

Hon’ble Shri. Rajeev Bhardwaj, Member (Judicial)

Hon’ble Shri Sanjay Puri, Member (Technical)

Counsel/Parties present For the Applicants : Mr. D.Srinivas Rao, Party in person For the Respondent : Mr.Dishit Bhattacharjee, Advocate.

Per: Rajeev Bhardwaj, Member (Judicial)

O R D E R

1. Extent of the power of the Adjudicating Authority to recall its own order has been put to test by the applicant by filing the present IA for recalling order dated 14.09.2023 in IA No.58 of 2023 in CP No.314/95/2022.

2. The CP No.314/95.2022 was filed by M/s.Stressed Assets Stabilization Fund (hereinafter referred as Respondent/Financial Creditor/FC) under Section 95 of Insolvency and Bankruptcy Code (IBC) against the present applicant, who stood as a Personal Guarantor to M/s.Priyaranjani Fibres Limited (hereinafter referred as Corporate Debtor/CD)

2.1 The CD took a loan of Rs.936.16 lakhs from IDBI on 30.08.1993. The Guarantee Agreement was executed on 15.09.1994 and the FC invoked the guarantee on 30.12.1999.

2.2 For recovering the debt, the respondent approached the Debts Recovery Tribunal, Chennai on 01.02.2000 by filing OA No.222/2000, which was subsequently renumbered as OA No.373/2007 and a Decree was passed on 10.08.2009 and Recovery Certificate was issued on 19.11.2009.

2.3 Reference under Section 15 of Sick Industrial Companies Act, 1985 (SICA) was registered on 18.09.2001. The respondent also issued demand notice dated 29.08.2006 under Section 13(2) of SARFAESI Act. In the CP No.314/2022, the applicant filed an application IA No.58 of 2023 for the dismissal of the petition filed by the FC on the grounds of limitation.

2.4 After the dismissal of the IA No.58 of 2023 on dated 14.09.2023, the applicant has filed the instant IA for recalling the said order on the grounds of fraud, willful misrepresentation of facts and suppression of material documents by the Respondent.

2.5 The applicant has raised certain legal issues, (i.e., Issues A to F) as to how the order dated 14.09.2023 in IA No.58/2023 was obtained by fraud, willful misrepresentation of facts and suppression of material documents by the Respondent, which are given below:

a) It is claimed that the respondent has misrepresented about the date of default, as it is different from the petition filed in the DRT, Chennai.

b) The applicant has also referred to various OTS letters, by submitting that these were unlawfully issued by Mr.K.Sivananda Reddy and further he also made some unauthorized payments to the respondent. The OTS proposals have not only been made after the expiry of the limitation period, i.e., 01.04.2000, but these were also conditional and therefore, these cannot be considered as lawful acknowled- gement of the debt by the CD. In para No.8 of the application, the applicant has given details of orders passed by different forums, which clearly show that Mr.K.Sivananda Reddy was not having any locus standi to repay the dues of CD. Therefore, any acknowledgement of debt for payment made by him is not binding on the Corporate Debtor.

c) The respondent has made misrepresentation as recorded in para 11 of the impugned order that the proceedings before the DRT, BIFR and AIFR are still continuing, while there is no