Non-filing of a repayment plan under the Insolvency Code results in consequences equivalent to its rejection and enables creditors to file for bankruptcy.

ORDER

Per Coram:

1. This application arose from the Insolvency resolution process of Mr. M A Nasser, Personal Guarantor of M/s. J M Financial Asset Reconstruction Company Ltd, the Corporate Debtor. These applications have been filed by CA Mr. Jasin Jose, the Resolution Professional appointed by this Tribunal in the matter of M/s J M Financial Asset Reconstruction Company Ltd with the following prayers: -

i. To take the Report of the Resolution Professional on the meeting of the creditors on record under Sec. 112 of IBC;

ii. Pass an order Non submission of Repayment Plan is as good as rejecting the plan under Section 114 (1) of IBC on the basis of the Report of the meeting of the creditors;

iii. Pass an order under Section 115 (2) of IBC declaring that the creditors shall be entitled to file an application for bankruptcy: and

iv. Pass such other orders that this Hon'ble Tribunal deems fit in the interest of justice.

2. The main CP was filed against Mr. M A Nasser, who is the Personal Guarantor to the Corporate Debtor, M/s Transglobal Inland Container Services Private Limited. Insolvency Resolution Process against the Personal Guarantor was initiated on 31/01/2025 by virtue of an order passed by this Tribunal in CP(IBC)/35/KOB/2024, wherein the applicant herein was appointed as the Resolution Professional.

3. Further, the Applicant made public announcement on 05/02/2025, which was subsequently communicated to the Personal Guarantor, Financial Creditor and to the Adjudicating Authority. Pursuant to the public announcement, the RP had received claims from creditors. Accordingly, the Committee of Creditors was constituted by the applicant in compliance with Section 103 of the Code, 2016 and Regulation of the Insolvency Resolution Process for Personal Guarantor to Corporate Debtor.

4. In compliance with the Order passed by this Tribunal, on 17.02.2025, the Applicant had requested the Personal Guarantor via speed post and email on 24.02.2025 to provide all the information, assist the RP to prepare the statement of affairs, and submit the Repayment Plan under Section 105 of the Insolvency and Bankruptcy Code. However, Mr. M A Nasser, the Personal Guarantor, did not respond to the matter seriously and showed no interest in submitting his statement of affairs or a repayment Plan to settle the dues in his capacity as Personal Guarantor.

5. On March 4, 2025, the RP issued another letter to the Personal Guarantor via email and speed post, requesting all necessary information to assist in preparing the statement of affairs and submitting the Repayment Plan under Section 105 of the Code. However, Mr. M A Nasser, the Personal Guarantor, did not respond to this letter either. Reminder emails were subsequently sent on March 12th and 17^th of 2025.

6. Subsequently, on 4th April 2025, the RP convened the First Creditors Committee meeting to update the status of the Insolvency Resolution Process and discuss the further course of action. The CoC has advised the RP to send a request to the personal guarantor to submit the statement of affairs (mandatory) and repayment plan, if any, within 7 days, i.e., on or before 12/04/2025, and to convene one more meeting to finalize the further course of action.

7. Subsequently, on 04.04.2025, RP again sent a letter and email to the Personal Guarantor, requesting them to submit repayment plan and statement of affairs.

8. The RP convened the Second Creditors Committee meeting on April 25, 2025. JM Financials sought 10 days to decide on filing either a Non- Cooperation application under Regulation 22 of the