The failure of a personal guarantor to submit a repayment plan in insolvency proceedings justifies continuing actions under applicable insolvency regulations.

IA(IBC)/270/KOB/2025

IN

CP(IBC)/14/KOB/2024

(Under Regulation 17B of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors)

Regulations, 2019)

In the matter of:-

The Federal Bank Limited

Vs.

Mr. Basheer Ahamad V. K

Memo of Parties:

Mr. Allen Thomas Joseph

Resolution Professional of Mr. Basheer Ahamad V

K, Personal Guarantor of MIR Realtors Pvt Ltd IBBI/IPA-001/IPP-02729/2022-2023/14207

37/2038, Ist Floor, Muttathil Lane

Kadavanthra, Kochi 682020.

…Applicant

–

Order delivered on: 28.08.2025

Coram:

Hon’ble Member (Judicial) : Shri. Vinay Goel

Hon’ble Member (Technical) : Smt. Madhu Sinha

Appearances:

For the Applicant : Mr. Allen Thomas Joseph,

Resolution Professional

For the Respondent : PCS Mr. K S Ravichandran

O R D E R

Per Coram

1. This application is filed by Mr. Allen Thomas Joseph, the Resolution Professional for Mr. Basheer Ahamad V. K., the Personal Guarantor to M/s. MIR Realtors Private Limited. The applicant seeks an order from this Tribunal to take on record the application filed under Regulation 17B of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, and to issue appropriate directions in light of the fact that the Personal Guarantor has not submitted a draft repayment plan.

2. The Insolvency Resolution Process against Mr. Basheer Ahamad V K was initiated on 26.03.2025 by an order of this Tribunal in CP(IBC)/14/KOB/2024, wherein the Applicant was appointed as the Resolution Professional.

3. The Resolution Professional made a public announcement on

01.04.2025, inviting claims from creditors. Claims were received from Federal Bank Limited and Kerala Financial Corporation (KFC), which were duly verified and admitted in accordance with Regulation 8. A list of creditors was also prepared under Section 104 and Regulation 9 of the Insolvency and Bankruptcy Code, 2016.

4. Despite repeated written and verbal requests and reminders, the personal guarantor has not provided the complete information as required under Section 107(3)(b) of the Insolvency and Bankruptcy Code or to submit a repayment plan within the stipulated time. The Resolution Professional has annexed the emails dated 03.04.2025, 10.04.2025, 26.04.2025, 02.05.2025, 07.05.2025, and 12.05.2025, which were sent to the Personal Guarantor requesting cooperation and submission of the repayment plan as Annexure 2.

– 5.

Company Law Appellate Tribunal (NCLAT) challenging the order passed The Personal Guarantor has filed an appeal before the Hon’ble National by this Tribunal in CP(IBC)/14/KOB/2024, whereby the insolvency resolution process against the Personal Guarantor was admitted. The the matter for further consideration on July 29, 2025. The Resolution Hon’ble Appellate Tribunal has taken the appeal on record and posted Professional submits that as on the date of this application, no stay has been granted by the Hon’ble Appellate Tribunal.

6. The Resolution Professional submits that in accordance with Section

110(2) of the Code, only Kerala Financial Corporation, having relinquished its security interest, was eligible to vote on matters pertaining to the repayment plan. Consequently, a resolution was placed before Kerala Financial Corporation seeking authorization for the Resolution Professional to approach this Tribunal under Regulation 17B. The Kerala Financial Corporation approved the said resolution, and the decision has been recorded in the minutes of the meeting held on 13.06.2025. The Committee of Creditors (CoC) passed the following resolution under Item No. A6:

“Item No. A6 To inform the creditors about Regulation 178 of the PGIRP Regulations and the applicability of Section 110(2) of the IBC The RP briefed the meeting about the recently introduced Regulation 17B of the PGIRP Regulations which provides that on the direction of the creditors, the Resolution Professional may approach the Hon’ble NCLT for further directions if the personal guarantor fails to submit the repayment plan within the prescribed tim