IN THE NATIONAL COMPANY LAW TRIBUNAL, BENGALURU BENCH

[Through Physical hearing/VC Mode (Hybrid)]

ITEM No.32

I.A.No.702/2024 in

C.P.(IB)No.151/BB/2024

IN THE MATTER OF:

Sri Visvesvaraya Co-operative Bank Ltd. … Petitioner

Vs.

Mr. Nagaraj C M … Respondent

Petition under Section 95 of I & B Code, 2016

Order delivered on: 29.09.2025

CORAM:

SHRI SUNIL KUMAR AGGARWAL

HON’BLE MEMBER (JUDICIAL)

SHRI RADHAKRISHNA SREEPADA

HON’BLE MEMBER (TECHNICAL)

PRESENT:

For the RP : Shri Ravi Sankar Devarakonda

For the Respondent : Ms. Apoorva

ORDER

1. Heard the Ld. Counsel for the parties.

2. The order could not be prepared. List on 29.10.2025 for Orders

-Sd- -Sd-

RADHAKRISHNA SREEPADA SUNIL KUMAR AGGARWAL MEMBER (TECHNICAL) MEMBER (JUDICIAL)

PS

IN THE NATIONAL COMPANY LAW TRIBUNAL BENGALURU BENCH, BENGALURU (Exercising powers of Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016)

I.A. No.702/2024 in C.P.(IB)No.151/BB/2024 Under Section 99 & Section 60(5) of IBC, 2016 r/w Rule 7 (2) of the Insolvency &

Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 IN THE MATTER OF:

Mr. Nagaraj C. M., Personal Guarantor of M/s Right Engineers and Equipments India Private Limited through his Resolution Professional Shri Ravi Sankar Devarakonda, 41/1, 2^nd Floor, 8^th Main, 11^th Cross, Jayanagar 2^nd Block, Bangalore - 560001 ……. Applicant/Resolution Professional IN THE DECIDED MATTER OF:

Sir M. Visvesvaraya Co-operative Bank Limited, No-109, Sankaramatt Road, Shankar Puram, Bengaluru – 560 004 ……..Financial Creditor Vs Mr. Nagaraj C. M.

S/O. Sri. Manjappa Shetty C.A.

No. 3, Flat No-H1, 1^st Floor, Brindavan Apartment, Anugraha Layout, 2^nd Stage, Bilekahalli, Bannerghatta Road, Bengaluru - 560076 …….Personal Guarantor of the Corporate Debtor Order Delivered on: 29.09.2025 Coram: Hon’ble Shri Sunil Kumar Aggarwal, Member (Judicial)

Hon’ble Shri Radhakrishna Sreepada, Member (Technical)

O R D E R

1. The present Application has been filed on 09.09.2024 by the Resolution Professional, with a prayer to take on record the Report submitted by the RP under Section 99 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “IBC, 2016/Code”) recommending acceptance of the Application filed U/s. 95 of the Code for initiation of Insolvency Resolution Process in respect of Mr. Nagaraj C. M. who is the Personal Guarantor of M/s Right Engineers and Equipments India Private Limited (“Corporate Debtor”).

2. It is stated that Mr. Nagaraj C. M stood as Personal Guarantor in respect of the financial facilities extended by Sir Visveswaraya Cooperative Bank Ltd. to Corporate Debtor. Upon default by the Corporate Debtor in servicing the said facilities, the Bank initiated CIRP proceedings in CP(IB)/320/BB/2019, which were admitted vide order dated 29.10.2019. As no Resolution Plan was approved, the Corporate Debtor was ordered into Liquidation on 02.12.2020, and Mr. Addanki Haresh was appointed as Liquidator.

3. Since the dues remained unrealised in liquidation, the Bank invoked the Personal Guarantee dated 25.10.2016 executed by Mr. Nagaraj C. M and issued notice under Rule 7(1) of the IBBI (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, read with Section 95(4)(b) of the IBC, 2016, in Form B on 17.12.2022, calling upon him to discharge the guaranteed liability within 14 days. Upon his failure, the default by the Personal Guarantor is reckoned as 01.01.2024.

4. Subsequently, the Financial Creditor filed an application CP(IB) No. 150/BB/2024 under Section 95 of IBC, 2016, claiming the following amounts:

5. By order dated 20.08.2024, Mr. Ravi Sankar Devarakonda was appointed as the Resolution Professional to submit a report under Section 99(7) regarding acceptance or rejection of the application.

6. As required under section 99(1) of the IBC, 2016, the Resolution Professional examined the application and annexures f