The court determined that a Personal Guarantor's insolvency proceedings are inequitable pending resolution of the Principal Borrower's liabilities.

SHRI. SANJAY PURI, HON’BLE MEMBER (TECHNICAL)

O R D E R Company Petition IB/146/95/HBD/2023 Orders pronounced, recorded vide separate sheets. In the result, the Company Petition IB/146/95/HDB/2023 is not admitted at this stage.

The present petition is therefore, disposed of, with liberty reserved in favour of the Financial Creditor to institute appropriate proceedings under Section 95 of the IBC against the Personal Guarantor only upon failure of the Principal Borrower to satisfy the debt from the arbitral award, or in the event of any material change in circumstances impairing its ability to discharge the debt in default SD/- SD/-

MEMBER (T) MEMBER (J)

Vamsi IN THE NATIONAL COMPANY LAW TRIBUNAL HYDERABAD BENCH - II ( Section 95 (1) of the Insolvency and Bankruptcy Code, 2016 r/w Rule 7(2) of Insolvency and Bankruptcy Code, 2016 (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019 In the matter of:

State Bank of India Head Office State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai 400 021.

Branch Office SAM Branch- II, D. No. 3-4-1013/A, 1st Floor, Commuter Amenity Centre (CAC)

TSRTC Bus Station, Kachiguda, Hyderabad- 500 027 .…Financial Creditor Versus Mr. Kamma Srinivasa Rao Registered office: Madhucon House, Plot No. 1129/A, Road No. 36, Hitech City Road, Jubilee Hills Hyderabad 500 0033, Telangana, India …. Personal Guarantor/ Respondent No. 1 M/s. TN (DK) Expressways Limited R/o: Madhucon House, Plot No. 1129/A, Road No. 36, Hitech City Road, Jubilee Hills Hyderabad 500 0033, Telangana, India. …Corporate Debtor/ Respondent No.2 Date Of Order: 30.01.2026 CORAM:

Sri Rajeev Bhardwaj, Hon’ble Member (Judicial)

Sri Sanjay Puri, Hon’ble Member (Technical)

Counsels present For the Financial Creditor : Ms.Niharika Agarwal, Mr.P Ravi Charan Advocates For the Personal Guarantor : Mr.Raja Shekar Rao Salvaji, Ms.Madhumita Advocates [ PER: BENCH ]

O R D E R

1. The instant petition is filed byM/s. State Bank Of India (Financial Creditor/FC/Petitioner) under Section 95 (1) of The Insolvency and Bankruptcy Code, 2016 (IBC) r/w Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking an order for initiation of Personal Insolvency Resolution Process against Mr. Kamma Srinivasa Rao, the Personal Guarantor (PG/Respondent) of M/s. TN (DK) Expressways Limited (Corporate Debtor/CD/ Principal Borrower).

APPLICATION:

2. It is averred that the Corporate Debtor had availed credit facilities of Rs 224.00 Crores (Rupees Two Hundred and Twenty- Four Crores Only) from the consortium of Banks which includes State Bank of Hyderabad, State Bank of Mysore, State Bank of Saurashtra, Bank of Maharashtra, Vijaya Bank, Andhra Bank under a Common Loan Agreement/CLA dated 11.10.20061. This consortium is presently led by State Bank of India.

3. It is averred that the State Bank of India acted as the lenders’ agent as well as security trustee. The FC extended an aggregate facility of Rs.190 Crores (Rupees One Hundred and Ninety Crores Only) to the CD herein, under the CLA.

4. It is submitted that the Personal Guarantor herein stood as a guarantor to secure the repayment of the financial assistance availed

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by the CD from the FC. Accordingly, the Personal Guarantor executed a Guarantee Agreement dated 28.03.2013.2

5. It is further submitted that the said financial facilities were revived and 30.07.2018³

6. It is stated that the FC has agreed to restructure the debt granted to CD including grant of Fund Interest Term Loan/FITL of Rs 3.10 Crores out of total 5.81 Crores granted by other lenders including the merged banks of FC, vide a sanction letter dated 28.03.2013.

7. In the meantime, the CD has made an application for debt restructuring. Accordingly, the CD and Consortium Lender