The Tribunal concluded that non-compliance with repayment plan obligations permits continuation of the insolvency process, despite an ongoing appeal by the personal guarantor.

CP(IBC)/15/KOB/2024

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

Corporate Debtors) Regulations, 2019)

In the matter of:-

The Federal Bank Limited

Vs.

Mr. Arun Kumar K Memo of Parties:

Mr. Reuben George Joseph

Resolution Professional of Mr. Arun Kumar K,

Personal Guarantor of MIR Realtors Pvt Ltd

37/2038, I^st Floor, Muttathil Lane,

Kadavanthra, Cochin 682 020

…. 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. Reuben George Joseph,

Resolution Professional.

For the Respondent : PCS Mr. K S Ravichandran

CP(IBC)/15/KOB/2024

O R D E R

Per: Coram

1. This application is filed by Mr. Reuben George Joseph, the Resolution Professional for Mr. Arun Kumar K, the Personal Guarantor to M/s. MIR Realtors Private Limited, seeking appropriate directions under Regulation 17B of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, in view of the fact that the Personal Guarantor has failed to submit the repayment plan.

2. The Insolvency Resolution Process against Mr. Arun Kumar K was initiated on 26.03.2025 by an order of this Tribunal in CP(IBC)/15/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, Kerala Financial Corporation, Dhanalaxmi Bank Limited, and Piramal Finance Ltd, all of 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, CP(IBC)/15/KOB/2024

12.05.2025, and 17.05.2025, 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)/15/KOB/2024, whereby the insolvency resolution process against the Personal Guarantor was admitted. The the matter for further consideration on 29.07.2025. 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 ellate Tribunal.

6. bTeheen R gersaonltuetdio bny Pthroef Hesosnio’bnlael A spupbmits 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 passed the following resolution as Item No. A6:

“Item No. A6 To inform the creditors about Regulation 17B of the PGIRP Regulations and the applicability of Section 110(2) of the IBC The RP briefed the meeting about the recently introduced Regulation 17Bof the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 CP(IBC)/15/KOB/2024 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 timeline. The RP explained the newly i