IN THE NATIONAL COMPANY LAW TRIBUNAL

AHMEDABAD

COURT - 2

ITEM No.312 - C.P. (IB)/174(AHM)2023

With

ITEM No.313 - IA/1442(AHM)2023

Order under Section 95 IBC

IN THE MATTER OF:

State Bank of India ........Applicant

Vs

Devendrasinh Ranjitsinh Jadeja ........Respondent

Order delivered on: 07/03/2024

Coram:

Mrs. Chitra Hankare, Hon’ble Member(J)

Dr. Velamur G Venkata Chalapathy, Hon’ble Member(T)

ORDER

The case is fixed for pronouncement of the order. The order is pronounced in the open

court, vide separate sheet.

-Sd- -Sd-

DR. V. G. VENKATA CHALAPATHY CHITRA HANKARE

MEMBER (TECHNICAL) MEMBER (JUDICIAL)

BEFORE THE ADJUDICATING AUTHORITY THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD (COURT - II)

(Filed under Section 95 of the Insolvency & Bankruptcy Code, 2016)

In the matter of :- State Bank of India Stressed Assets Management Branch, 2^nd Floor, Paramsiddhi Complex, Opp. V. S. Hospital, Ellisbridge, .… Applicant /

Ahmedabad-380006, Gujarat Financial Creditor Versus Mr. Devendrasinh Ranjitsinh Jadeja

18, Shiva 1, Pur Vibhag, Shiva, … Respondent/

Taluka: Bhanvad, District: Personal Guarantor Jamnagar-360531 Order pronounced on 07.03.2024 Coram:

Mrs. Chitra Hankare, Member (Judicial)

Dr. V. G. Venkata Chalapathy, Member (Technical)

Present:

For the Applicant : Mr. Biju Nair, Advocate For the Respondent : None For the RP : Mr. Saurabh Rachchh, Advocate

JUDGMENT

1. State Bank of India (Financial Creditor) has filed this Application under section 95 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as IBC,2016) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, seeking to initiate Insolvency Resolution Process against Mr. Devendrasinh Ranjitsinh Jadeja, the Personal Guarantor of the Corporate Debtor namely M/s. Yogiraj Ginning and Oil Industries Pvt Ltd.

for default of an amount of Rs.24,41,53,898.12/-.

2. As per letter of arrangement dated 07.01.2012, credit facilities were sanctioned to the Corporate Debtor. It was renewed from time to time i.e. on 15.04.2013, 09.05.2014 and 24.03.2015. The credit facilities were enhanced on 21.04.2016 and renewed on 26.04.2017 and 06.06.2018. The Respondent executed personal guarantee in favour of the applicant for securing various credit facilities to Corporate Debtor on 07.01.2012, 05.06.2014 and 24.03.2015. According to the applicant, as per the last guarantee agreement executed by the respondent dated 24.03.2015, credit facilities aggregating to Rs.19.65 crores were secured. It includes interest, charges, expenses, commissions, etc. The respondent also executed revival letter on 19.09.2017, so limitation started from that date. The Corporate Debtor defaulted in the repayment, hence, its credit facility account becomes Non-Performing Asset (NPA) on 27.09.2018. The applicant, therefore, issued notice on 14.06.2019 under Section 13(2) of the SARFAESI Act to the corporate debtor and personal guarantor. They have not filed reply to said notice. Thereafter, they filed application before DRT for recovery of an amount of Rs.19,00,36,798.08. The applicant also filed application under Section 7 of the IBC against the corporate debtor which was admitted. The application for liquidation of Corporate Debtor is pending before this Tribunal. According to the applicant, the debt was due on 25.10.2019 and default was occurred on 24.12.2019. The total amount of default is mentioned as Rs.24,41,53,898.12 together with interest.

3. This Tribunal vide order dated 04.12.2023 appointed Mr. Vikas Gautamchand Jain as Resolution Professional (RP) in respect of Personal Guarantor. The RP has filed his report dated

14.12.2023. RP Recommended for initiation of insolvency resolution process against the personal guarantor.

4. The personal guarantor was duly served with the report of RP but none has appeared either by himself or through counsel. Heard Ld. Counsel for the applicant and Ld. Counsel for the RP. Also