in

C.P. (IB)/239(KB)2024

An application under Section 99 (1) of the Insolvency and

Bankruptcy Code, 2016

And

An application under Section 95(1) of the Insolvency and

Bankruptcy Code, 2016 and Under Rule 7(2) of the Insolvency

Resolution Process for Personal Guarantors to Corporate Debtors)

Rule, 2019.

In the matter of:

Union Bank of India Limited

…Financial Creditor

Versus

Mr. Subhas Kumar Sharma

…Personal Guarantor

And

Mr. Krishna Kumar Chhaparia

…Applicant/Resolution Professional Date of pronouncement:15.12.2025

CORAM:

SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL)

CMDE SIDDHARTH MISHRA, HON’BLE MEMBER (TECHNICAL)

Appearance (via video conferencing/physically)

Ms. Tannya Baranwal, Adv. ] For the Financial Creditor

Ms. Vansika Khaitan, Adv. ]

O R D E R

in C.P. (IB)/239(KB)2024 Per: Siddharth Mishra, Member (Judicial)

1. The Court Convened in a hybrid mode.

2. The Financial Creditor has filed a Company Petition under Section

95 of IBC, 2016 against Mr. Subhas Kumar Sharma, the Personal Guarantor of the Corporate Debtor Imperial Tubes Private Limited to repay the outstanding dues of Rs.182,36,53,135/-(Rupees One Hundred and Eighty-Two Crore Thirty-Six Lakh Fifty-Three Thousand One Hundred Thirty-Five only) due against the Corporate Debtor to be paid by the Personal Guarantor of the Corporate Debtor. The Personal Guarantor has given personal guarantee of Rs.112,40,00,000/-(Rupees One Hundred Twelve Crore Forty Lakh) along with interest. That out of the total demand of Rs.182,36,53,135/-, Principal Outstanding is Rs.101,47,53,091/- and interest being Rs.80,89,00,044.10/-

3. That on 16.01.2014 the Personal Guarantor, Manish Sharma on behalf of M/s. Imperial Tubes Private Limited, approached the Applicant Bank for Financial/Credit facilities. After due consideration, the Bank sanctioned the facilities based on the terms and conditions outlined in the Sanction letter.

4. That on 04.04.2018 the Corporate Debtor failed to make payment, the Bank was constrained to invoke guarantee vide Notice dated 04.04.2018 against the guarantors for making payment of in C.P. (IB)/239(KB)2024 Rs.90,10,51,026.21 Crores including interest as on 31.03.2018 (Page No.173-176 of CP)

5. That on 04.06.2018 the objections to the Notice by the Personal Guarantor (Page No.177-181 of CP)

6. That on 15.06.2018 the reply by the Applicant Bank to the objection of the Guarantor (Page No.182-186 of CP)

7. That on 24.01.2022 the One Time Settlement (OTS) letter issued by M/s. Imperial Tubes Private Limited to the Applicant Bank (Pages 113-114 of CP).

8. That on 20.02.2024 the applicant bank sent Demand Notice for payment of Rs.182,36,53,135/- in Form B under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process of Personal Guarantors to Corporate Debtor) Rules, 2019 to the Personal Guarantor.

9. On 16.03.2024 the Guarantor had sent reply to the Demand Notice issued by the Applicant Bank.

10. That on 01.08.2024 Union Bank of India filed Petition U/s.95 of the IBC, 2015 for initiation of Insolvency Resolution Process against the Personal Guarantor.

11. The application is complete as required under Section 95 read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019.

in C.P. (IB)/239(KB)2024

12. It is to be noted that Hon’ble Supreme Court in the judgment of Dilip B. Jiwrajka vs. Union of Ind ia & Ors. In WP (Civil) No. 1281 of 2021 dated 09.11.2023 has upheld the Constitutional Validity of the Sections 94 to 100 and the propositions that can be culled out from the Judgments inter-alia are as follows:

“i. No judicial adjudication is involved at the stages envisaged in Sections 95 to Section 99 of the IBC;

ii. The Resolution Professional appointed under Section

97 serves a facilitative role of collating all the facts relevant to the examination of the application for the commencement of the insolvency resolution process which has