The NCLT Mumbai Bench dismissed a petition filed under Section 7 of the IBC by a personal guarantor seeking CIRP initiation against a corporate debtor. The court found no merit for the petitioner to be considered a financial creditor.
The petition is dismissed as not maintainable under the Insolvency and Bankruptcy Code, 2016.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH
COURT – IV
C.P.(IB)/1190(MB)/2021
CORAM:
SHRI RAJESH SHARMA SHRI KISHORE VEMULAPALLI MEMBER (Technical) MEMBER (Judicial)
ORDER SHEET OF THE HEARING HELD ON 09.06.2022
NAME OF THE PARTIES:
Shaikh Mohammad Tariq Vs
Aegis Forging Limited
SECTION: 7 OF INSOLVENCY AND BANKRUPTCY CODE, 2016.
O R D E R
The Court is convened through Video Conference.
Contd……2
09.06.2022 / pvs
C.P.(IB)/1190(MB)/2021
: 2 :
The Corporate Debtor has taken funds from his Creditors/Investors a total sum of Rs.33,50,000/- for which the Financial Creditor has given the personal guarantee. The Corporate Debtor assured the Financial Creditor that in failure of relieving the personal guarantee of the Financial Creditor, and the Corporate Debtor will give a cash security along with the interest as demanded by the Financial Creditor and accepted by the Corporate Debtor.
The said amount of cash security was of Rs. 60,00,000/- which the Corporate Debtor has failed to give to the Financial Creditor even after the Financial Creditor granting extension of time.
The Corporate Debtor neglects/fails in making the cash security payment and reliving the said guarantor from all the guarantees provided at the time of the Corporate Debtor taking funds from various Investors/Creditors.
The Sole Arbitrator has passed an award dated 11.11.2013 in Arbitration proceedings wherein the Corporate Debtor is directed to pay cash security of Rs.3,64,58,785/- with accrued interest as on 01.07.2013 @ of 21% per annum added by further simple interest @ 6% per annum from 01.07.2013.
The Financial Creditor issued two letters dated 27.08.2021 to the Corporate Debtor/Judgment Debtor demanding the said amount as per the arbitration award.
Therefore, a total claim amount of Rs.5,43,12,602/- (Five Crore Forty Three Lakhs Twelve Thousand Six Hundred and Two only).
Contd….3
09.06.2022 / pvs
C.P.(IB)/1190(MB)/2021
: 3 :
Therefore, a total claim amount of Rs.5,43,12,602/- (Five Crore Forty Three Lakhs Twelve Thousand Six Hundred and Two only).
Sd/- Sd/- KISHORE VEMULAPALLI RAJESH SHARMA Member (Judicial) Member (Technical)
09.06.2022 / pvs
2 issues framed by the court
Whether a petition filed under Section 7 of the IBC by a personal guarantor is maintainable.
Whether the petitioner qualifies as a financial creditor under the IBC in a case involving guarantees and arbitration awards.
1 provisions across 1 enactments
Shaikh Mohammad Tariq
Aegis Forging Limited
KISHORE VEMULAPALLI
RAJESH SHARMA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
