Under Section 95(1) of the Insolvency & Bankruptcy Code, 2016 r/w Rule 7 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors), Rules,

2019.

In the matter of

Phoenix ARC Private Limited

through the Resolution Professional

Mr.Gaurang Chhotalal Shah

... Financial Creditor

Versus

Mr. Manoharlal Deokaranji Bhoot

… Personal Guarantor

Order delivered on: 02.08.2024

Coram:

Sh. Prabhat Kumar Justice V.G Bisht, (Retd). Hon’ble Member (Technical) Hon’ble Member (Judicial)

Appearances:

For the Financial Creditor : Mr.Priyank Jadhav, Advocate

For the Personal Guarantor : ex parte

ORDER Per: Virendrasingh Gyansingh Bisht, Member (Judicial)

1. The present petition is filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (“Code") r/w Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 by Phoenix ARC Private Limited through the Resolution Professional Mr.Gaurang Chhotalal Shah (“Financial Creditor / Applicant”) for the purpose of initiating insolvency resolution process against Mr. Manoharlal Deokaranji Bhoot (“Personal Guarantor /

Respondent”).

2. The total debt is amounting to INR 41,07,15,378/- (Rupees Forty-One Crores Seven Lakhs Fifteen Thousand Three Hundred and Seventy- Eight Only) as on 31.08.2020 along with further interests, charges and expenses till realisation. On 09.03.2015, the Guarantee was invoked by a way of recall notice.

3. The Deed of Guarantee was executed by the Personal Guarantor on

17.11.2007.

4. Th e Account of Corporate Debtor was classified as Non-Performing Assets (NPA) on 31.12.2014.

Submission on Behalf of the Financial Creditor/Petitioner

5. The Financial Submits that at the request of the Corporate Debtor a bank has sanctioned credit limits of Rs.29.00 cr. for utilising the fund in the Thermal Power Plant. The sanctioned amount is completely secured by the way of creating the mortgage and the personal guarantee.

6. The Company has executed the following documents in favour of applicant/Financial Creditor against the loan Facilities granted:

i.

Deed of Personal Guarantee, ii.

Demand Notice, iii.

Memorandum of Record of Equitable Mortgage, iv.

Recall Notice, v.

Invocation of Guarantee Notice.

7. This Tribunal admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by the Applicants for initiation of corporate insolvency resolution proceedings against M/s. Deegee Cotsyn Private Limited on account of default in payment of debt on part of the Corporate Debtor.

8. This Bench had appointed Mr. Gaurang Chhotalal Shah, Insolvency Resolution Professional (“RP”) vide Order dated 08.09.2023 in the captioned petition and had thereby directed the Applicant to prepare and file a Report u/s. 99 of the IBC, 2016. The RP via his Report was taken on record by a virtue of I.A.5040 of 2023 on 07.11.2023, after due examination of the application, documents filed along with the application, in addition to the requirements as mandated under of Section 99 of the IBC, 2016, has recommended to “..Admitting the present application filed by Phoenix Arc Private Limited (Creditor) Through The Resolution Professional Mr. Gaurang Chhotalal Shah through the RP in CP(IB)/514(MB)/2021 against Mr. Manoharlal Deokaranji Bhoot and thereafter declare Moratorium under Section 101 of the code and issue Public Notice for inviting the claims under section 102 of the code and may pass such orders as this Hon’ble NCLT deem necessary.

9. Further we note From the Resolution Professional’s submission that:

i. On 17.11.2007, UCO Bank Consortium consisting of UCO Bank ("Assignor Bank") as the Lead Bank, Union Bank of India, Bank of India and Canara Bank) and Deegee Cotsyn Private Limited ("Corporate Debtor") executed a Term Loan Agreement ("Term Loan I") of Rs. 17,00,00,000/-.

ii. A "Term Loan II" of Rs. 10,00,00,000/- and "Cash Credit"

f