An application under Section 95(1) of the Insolvency and Bankruptcy

Code, 2016.

In the matter of:

State Bank of India …Financial Creditor

Versus

Nikunj Bothra

…Personal Guarantor

And

Neeraj Kumar Sureka

…Applicant/Resolution Professional

Date of pronouncement:07.01.2025

CORAM:

SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL)

SHRI D. ARVIND, HON’BLE MEMBER (TECHNICAL)

Appearance (via video conferencing/physically)

Mr. Uttiyo Mallick, Adv. ] For the Financial Creditor

Ms. Payal Saha, Adv. ] Ms. Vedika Sureka, Adv. ]

Mr. Saurav Jain, Adv. ] For the Resolution Professional

Mr. Anuj Singh, Adv. ] For the Personal Guarantor

Ms. Ankita Baid, Adv. ] Ms. Trinisha De, Adv. ]

O R D E R

Per: Bidisha Banerjee, Member (Judicial)

1. The Court Convened in a hybrid mode.

2. This C.P.(IB)/262(KB)2022 has been preferred by the Financial Creditor to seek initiation of Insolvency Regulation Process against the Respondent Personal Guarantor to Corporate Debtor Rule, 2019 (“Personal Guarantors Rules”) and Regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 (‘Personal Guarantors Regulations’) in terms of Section 99 (1) of the Insolvency and Bankruptcy Code, 2016 read with applicable Regulation of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors), 2016.

3. The amount in debt is Rs.1,56,99,27,221.86/-(Rupees One Hundred Fifty-Six Crore Ninety Nine Lakhs Twenty Seven Thousand Two Hundred and Twenty-one and Paisa Eighty Six only) as on 30.11.2013 Default occurred on 28.02.2022.

4. The application is complete as required under Section 95 read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019.

5. The Applicant had proposed the name of the Insolvency Professional for appointment as Resolution Professional. In view of the above, Mr.

Neeraj Kumar Sureka, IBBI Registration No. IBBI/IPA-001/IP- P01539/2019-2020/12517, email ID: ipneerajsureka@gmail.com was appointed as Resolution Professional, subject to his possessing a valid AFA, in exercise of the power conferred under Section 97 of the IBC, 2016 on this Authority.

6. The Resolution Professional report under Section 99 indicated the following:

6.1. The State Bank of India (“SBI”) had sanctioned various credit facilities to Salasar Ispat Limited (“SIL”/ “Corporate Debtor”) on 08.06.2010, SBI sanctioned Term Loan, Working Capital, SLC and LC (inlands) for an aggregate limit of Rs.2,650.00 Lakhs.

6.2. At the request of the Corporate Debtor, SBI renewed and enhanced credit facilities on several occasions. Lastly on 25.03.2013, SBI had enhanced and sanctioned the limits for the credit facilities for an aggregate limit of Rs. 5, 821.00 Lakhs as detailed below:

6.3. The guarantor along with other Personal Guarantors to SIL had jointly and severally executed and delivered a Deed of Guarantee in favour of SBI on 25.03.2013 for repayment and discharge of Rs.5821 Lakhs with interest, enhanced interest, fees, commission, charges, costs and expenses including the Legal Cost and/or other money due to SBI in respect of the above credit facilities. Personal Guarantees were given by Mr.

Nikunj Bothra, Mr. Anand Kumar Agarwal and Mr. Ayush Agarwal.

6.4. Due to irregularity in deposit of the Loan Amount to the SBI interest component as per the terms and conditions of the Sanction Letter, the Loan Accounts became irregular and was classified as Non-Performing Asset (“NPA”) on 27.06.2013 by the SBI.

6.5. SBI as such proceeded against the Corporate Debtor SIL and Personal Guarantors under SARFAESI Act, 2002 and issued a statutory notice u/s. 13(2) of the SARFAESI Act, 2002 on 15.12.2014 to SIL as well as the guarantors demanding a sum Rs. 60,06,44,562.27/- outstanding as on 31.05.2013(inclusive of interest till 31.05.2013) plus unapplied interest from 01.06.2013 at the contractual rate on demanded amo