A personal guarantor remains liable for debts despite resignation, and the acknowledgment of debt extends the limitation period for insolvency petitions.

ORDER

(Hearing conducted through VC)

This Petition has been filed under Section 95 (1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016") r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 by State Bank of India (“Financial Creditor”) for initiating Insolvency Resolution Process against Mr. Ganesan Natarajan (“Personal Guarantor”) in respect of Principal Amount of Rs.160,50,47,213.01 together with interest and penalties. The Date of Default, as specified in Part-III of the Petition is 28.01.2020 i.e. the date when the notice under Form B was issued to the Personal Guarantor. This Petition has been filed on 27.11.2021.

2. Part – I of the Petition sets out the details of the Petitioner / Financial Creditor. It has its Office at Stress Assets Management Branch-I, Nagaland House, 11 & 13, Shakespeare Sarani, Kolkata- 700 017. Part-II of the petition sets out the details of the Personal Guarantor. The address of the Respondent is stated as Mr. Ganesan Natarajan, 14, South End Park, 1B, Landsdown, Kolkata- 700 029. The address of the Corporate Debtor is Ennore Coke Limited, No. 36, College Road, Nungambakkam, Chennai-600006 within the jurisdiction of this Tribunal. The Respondent stood as personal guarantor in respect of the loans availed by Ennore Coke Limited, the Corporate Debtor. In Part – III of the petition, the Petitioner has given the debt amount of Rs. 160,50,47,213.01. In Part-V of the petition, the Petitioner has proposed the name of the Insolvency Resolution Professional viz., Mr. Manish Jain having Registration No. IBBI/IPA-001/IP-P00582/2017-18/11023.

3. As per the averments made in the petition, the Corporate Debtor Ennore Coke Limited availed various credit facilities from the Petitioner Bank from time to time and lastly on 18.06.2011, to the limit of Rs.110.29 Crores. At the time of availing the credit facilities, the Guarantors of the Corporate Debtor including the Respondent Ganesan Natarajan executed various banking and guarantee documents guaranteeing due payment and discharge of all the dues payable by the Corporate Debtor with interest etc. due to the Petitioner Bank in respect of the credit facilities, forthwith on demand by the Petitioner Bank. The guarantee documents were executed by the Guarantor in favour of the Petitioner Bank on several dates and lastly on 10.02.2012. The Borrower and the Guarantors at the time of availing of the credit facilities, executed several other documents i.e. Acceptance Notice, Promissory Notes and Updated Repayment Schedule individually, jointly and severally in favour of the Petitioner Bank.

4. It is alleged that the Corporate Debtor started defaulting in the repayment of credit facilities and failed to adhere to the terms and conditions of the sanction letter. It could not maintain the accounts as regular and as such, the accounts was classified as Non-Performing Asset (NPA) on 28.10.2016 in consonance with the guidelines framed by RBI. The Petitioner Bank issued a notice dated 10.11.2016 under Section 13(2) of the SARFAESI Act, 2002 to the Principal Borrower as well as the Guarantors demanding a sum of Rs.58,91,31,035.00 plus interest at the contracted rate until payment. It is stated that the Principal Borrower and the Guarantors despite notice, did not pay the dues of the Petitioner Bank which made the Petitioner Bank file O.A. No.44 of 2