ORDER

(Heard through Video Conferencing)

1. This petition under Section 95 of IBC, 2016 read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 has been filed by State Bank of India, Stressed Asset Management Branch against Mrs. S. Swarnalatha (Personal Guarantor) who stood guarantee for the loan facilities availed by the Corporate Debtor Ganga Foundations Private Limited from State Bank of India. The prayer made in the petition is to initiate insolvency resolution process against the Personal Guarantor.

2. Part-I of the petition sets out the details of the Petitioner, State Bank of India. It was incorporated on 01.07.1955. Part-II of the petition sets out the details of the Personal Guarantor, S. Swarnalatha. She is living at New No 3, Old No 99, 1st Cross street, Kumaran Nagar Peruvallur, Jawahar Nagar, Chennai 600082 and also at 8/1, Nowroji Street, Chetpet, Chennai 600031.

3. Part-III of the petition sets out the details of the creditor, State Bank of India. The amount of debt is stated as Rs.57,99,55,439.47 and date of default is stated as 30.07.2021. (as last date for OTS payment was 29.07.2021.) DRT II Chennai Order dated 22.12.2020 in OA No 441 of 2018 was also obtained.

4. In Part IV of the Petition, the financial creditor has recommended the name of Mr. Ebenezer Inbaraj having registration number IBBI/PA-001IP-P00754/2017-2018/11286 as Insolvency Resolution Professional which has been accepted by him.

5. It is stated that the borrower company represented by its Chairman and Managing Director and the personal guarantors including the respondent approached SBI requesting for sanction of certain loan facilities for their business purposes. SBI on 24.7.2014 sanctioned (1) Dropline Overdraft Term Loan under Asset Backed Loan CRE of Rs. 41,30,00,000/- and (2) Dropline Overdraft Working Capital Demand Loan under Asset Back Loan CRE of Rs.8,00,00,000/- totalling to a sum of Rs.49,30,00,000/- to the Corporate Debtor. Corporate Debtor and the Personal Guarantors including the Respondent made an endorsement in the copy of Arrangement letter dated 26.7.2014 accepting the terms and conditions for the grant of the aforesaid Loan Facilities. Further the Borrower Company, represented by its chairman and Managing Director, availed the aforesaid credit facility and executed Agreement of Loan - cum Hypothecation dated 26.7.2014.

6. It is stated that the Personal Guarantors including the Respondent executed Guarantee Agreement dated 26.7.2014 agreeing inter alia that if at any time default is made by a borrower in payment of the dues the Respondent shall forthwith pay unconditionally to the Bank, on demand by the Bank, the whole amount as may be then due to the Bank without any demur. The above Guarantee Agreement is a continuing Guarantee and the Respondent agrees that any admission or acknowledgment in writing signed by the Borrower or any part payment by the Borrower shall be binding on her and further agreed that in case the Borrower making acknowledgement or making payment, the Borrower shall in addition to its personal capacity be deemed to act Guarantor's duly Authorised Agent and the borrower shall be deemed to have made and / or given acknowledgement by or on behalf of the Guarantors themselves and shall be binding on each of them for the purposes of Section 18 and 19 of the Limitation Act, 1963. It is stated that the Respondent/Personal Guarantor created Equitable Mortgage in respect of her land and Residential Building situated at Plot. No. 98, Door No. 98/1, First Cross Street, Kumaran Nagar, Peravallur, Chennai 600082.

7. It is stated that the Borrower Company and the Personal Guarantors including the respondent acknowledged liability in writing by executing revival letter on 25.07.2017 in favour of the Financial Creditor for the purposes of Section 18 of the Limitation Act, 1963.

8. It is stated t