ORDER

[Per: Coram]

1. This is a Company Petition filed on 01.02.2025 by M/s Krishna Arjun & Co. (Prop. Mr. Kulbhushan Aneja) (“the Applicant /Operational Creditor”), under Section 95(1) of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as the Code) read with Rule 7(2) of the Insolvency and Bankruptcy (Application for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (“hereinafter referred to as PG to CD Rules”) seeking to initiate Insolvency Resolution Process against Mr. Anand Bairam Patil (hereinafter referred as Personal Guarantor/Respondent) Personal Guarantor of Guruanand Silk Mills Pvt Ltd (“herein referred to as the Corporate Debtor”) having its registered office address at Rajshree Compound, 135 Sonale Gone, Pipeline, Bhiwandi 421302.

2. The Applicant submits that it had been supplying textile fabrics to the Corporate Debtor from time to time in the ordinary course of business and had raised invoices in respect of such supplies. The said goods were supplied on credit and the payments due under the invoices became overdue and remained unpaid. In order to secure timely payment of its dues and to ensure smooth continuation of business transactions, the Applicant required a personal guarantee for the outstanding and future supplies.

3. The Applicant submits that, pursuant thereto, the Personal Guarantor agreed to secure the liability of the Corporate Debtor and executed a Deed of Guarantee dated 01.12.2020 in favour of the Applicant, thereby guaranteeing repayment of the debts of the Corporate Debtor to the extent of Rs. 1,00,00,000/- in the event of default. The said Deed of Guarantee was executed to secure the amounts payable towards the invoices raised by the Applicant on the Corporate Debtor for supply of textile fabrics.

4. The Applicant submits that as per its books of account and ledger, a sum of Rs.2,75,13,673/-(Rupees Two Crore Seventy Five Lakh Thirteen Thousand Six Hundred Seventy Three only) was outstanding and payable by the Corporate Debtor as on 15.11.2024 towards the supplies made by the Applicant. The liability of the Personal Guarantor under the Deed of Guarantee is limited to Rs.1,00,00,000/-.

5. The Applicant further submits that the Hon’ble NCLT, Mumbai Bench II, vide order dated 14.11.2024 passed in CP (IB) No. 1069/MB/C-II/2023 under Section 10 of the Code, admitted the Corporate Debtor into Corporate Insolvency Resolution Process. Despite admission of the Corporate Debtor into CIRP and despite repeated demands and reminders, the outstanding dues remained unpaid.

6. The Applicant submits that it invoked the personal guarantee vide invocation notice dated 15.11.2024 calling upon the Personal Guarantor to pay the guaranteed amount. Thereafter, the applicant issued a demand notice dated 20.12.2024 in Form B under Rule 7(1) of the PG to CD Rules to the Personal Guarantor. However, the Personal Guarantor failed to discharge the guaranteed liability of Rs. 1,00,00,000/-.

7. The Applicant submits that the Corporate Debtor and the Personal Guarantor have failed to adhere to the terms of the invoices and the Deed of Guarantee and have committed default in repayment of the outstanding dues. The debt remains unpaid and due. In view of the continued default and non-payment of the guaranteed amount, the present application has been filed under Section 95 of the Code seeking initiation of insolvency resolution process against the Personal Guarantor to the Corporate Debtor.

8. During the pendency of the present petition, an intervention application bearing IA No. 113/2025 was filed by Bank of Maharashtra (hereinafter referred to as Intervenor Bank), a secured financial creditor of the Personal Guarantor seeking permission to intervene in the present proceedings. It is submitted that the Personal Guarantor had availed various credit facilities from the Intervenor Bank, including a home loan of ₹35,00,000/- sanctioned vide letter dated 16.09.2005, a housing loan