Under Section 95(1) of the Insolvency & Bankruptcy Code, 2016 r/w Rule 7 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors), Rules,

2019.

In the matter of

IDBI Bank Limited

... Financial Creditor

Versus

Sodhamti R Gutte

… Personal Guarantor

Order delivered on: 29.04.2024

Coram:

Hon’ble Member (Judicial) : Sh. Virendra Singh G. Bisht (Retd. Justice)

Hon’ble Member (Technical) : Sh.Prabhat Kumar

Appearances:

For the Financial Creditor : Mr. Ali, Advocate

For the Respondent : Mr. Aniruth Purusothaman, Advocate

ORDER Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 by IDBI Bank Limited (“Financial Creditor / Applicant”) for the purpose of initiating insolvency resolution process against Mr. Sodhamati R Gutte (“Personal Guarantor / Respondent”) who is the Personal Guarantor of the Corporate Debtor, Sunil Hitech Engineers Limited.

Per: V.G. Bisht (Retd. Justice)

1. The present petition is filed under Section 95 of the Insolvency and

Bankruptcy Code, 2016 (“Code") r/w Rule 7 of the Insolvency and

2. The total debt amounting to INR 288,53,80,787/- (Rupees Two Hundred and Eighty-Eight Crore Fifty-Three Lakhs Eighty Thousand Seven Hundred and Eighty-Seven Only) including any interest or penalties as on 31.03.2023. The Date on which the Guarantee was invoked on 06.09.2018.

3. The Account of Corporate Debtor was classified as Non-Performing Assets (NPA) on 30.06.2018.

4. The record of default in NESL is issued to the Financial Creditor after the completing the Authentication on 27.04.2023, from the records the NESL date of default is on 30.06.2018.

5. The Deed of Guarantee was executed on 13.06.2016 by the Personal Guarantor on 13.06.2016.

6. That Counsel for the Petitioner also invited the attention of this bench vide order dated 20.12.2023 to the Demand Notice dt. 03.05.2023, sent to the Respondent for invoking Personal Guarantee as per the Deed of Guarantee dt. 13.06.2016, invoking Personal Guarantee in respect of unpaid debt owed to Sunil Hitech Engineers Limited, against the Corporate Debtor.

Submission on Behalf of the Financial Creditor/Petitioner

7. The Company has executed the following security documents in favour of applicant/Financial Creditor against the loan Facilities granted:

i.

Deed of Guarantee ii.

Supplemental Consortium Joint Deeds of Hypothecation on all movable assets iii.

Supplemental Deed of Working Capital Agreement

8. It is submitted that the Financial Creditor have granted loan to the Personal Guarantor under consortium banking arrangement with UCO Bank as the lead bank and the Petitioner Bank (IDBI). The working capital limits aggregating to Rs. 1,99,74,00,000/- comprising fund-based limits of Rs. 28,54,00,000/- and non-fund- based limits of Rs. 171,20,22,001/-, for the purpose of meeting working capital requirements vide various sanction letters from

2006 to 2017.

9. The Financial Creditor herein submits that the Personal Guarantor/Respondent had availed various financial facilities in the form of working capital from the Petitioner which was interalia secured by the way of personal guarantee.

10. The Financial Creditor submits that this Hon’ble Adjudicating Authority, Mumbai vide dated 10.09 2018, in C.P. (I.B.) No. 2295 of 2018 admitted the application u/s 7 of Insolvency and Bankruptcy Code, 2016 (“Code”) filed by the Petitioner/Financial Creditor against the Corporate Debtor and Corporate Insolvency Resolution Process(“CIRP”) initiated against the Corporate Debtor. Further, on 25.06.2019, the Hon’ble Tribunal passed an Order for Liquidation of the Corporate Debtor.

11. Pursuant to the Notice dated 06.09.2018 addressed to Corporate Debtor and its Guarantors, The Petitioner/Financial Creditor has already initiated Recovery proceedings against the Corporate Debtor and its Guarantors before the Hon’ble Debt Recovery Tribunal- II, Delhi with UCO Ban