In the matter of Jai Shree Mishra, Cp (Ib) No. 39/94(1)/JPR/2022

NCLT19 Apr 2023

Case brief

AI extract

What is this about?

The National Company Law Tribunal admitted an application under Section 94 of the IBC to initiate the Insolvency Resolution Process against a personal guarantor, following the推荐 of the Resolution Professional under Section 99.

What did the court decide?

Insolvency Resolution Process initiated against the debtor; moratorium declared; Resolution Professional directed to publish notice and invite claims.

What the court decided

AI extract

Outcome

Insolvency Resolution Process initiated against the debtor; moratorium declared; Resolution Professional directed to publish notice and invite claims.

Issue for consideration

Whether to admit the application for initiation of Insolvency Resolution Process against the Personal Guarantor under Section 94 of the IBC. +1 more

A compact analysis

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.

A compact analysis

Sr.	Name of Financial Creditor	Debt in Default	Date of
No.		(In INR) as per Form A	Default/Remark
1.	Kotak Mahindra bank	10,36,420/-	15.07.2020 (Date of Cheque Bounce)

2.	Bajaj Finance Ltd.	4,20,000/-	29.03.2020 Default in repayment of EMI of March, 2020 onwards as per settlement amount
3.	HDB Financial Services Ltd.	18,56,279	15.01.2020, 23.10.2018
4.	State Bank of India	1,64,54,355	01.09.2020 (NPA)
5.	State Bank of India (Car Loan)	4,10,823	N.A.
6.	IDFC First Bank Ltd.	8,59,290	23.07.2019 (i.e. Notice invoking Arbitration)
7.	Bank of Baroda	18,18,555	Not Known
8.	India Bulls Ltd. (a)	38,43,230	25.10.2021
9.	India Bulls Ltd. (b)	1,36,91,990	27.05.2021
	Total Debt	4,03,90,942/-

*Sr.*	*Requirements* *under*	*Compliance by RP*
*No.*	*Relevant provisions of* *Section 99 of the Code*
i.	Section 99 (1): The RP shall examine the application referred u/s 94 or 95 within 10 days of appointment and submit a report to Adjudicating Authority for approval/rejection of the application	YES The RP submitted that the present report is prepared in compliance with the requirements of Section 99(1) of the Code
ii.	Section 99(2):	Not Applicable

	Where the application has been filed under Section
	95, the resolution
	professional may require the debtor to prove
	repayment of the debt claimed as unpaid by the creditor by furnishing – a) evidence of electronic transfer of the unpaid amount from the bank account of the debtor;
	b) evidence of
	encashment of a cheque issued by the debtor; or a signed acknowledgment by the creditor accepting receipt of dues.
iii.	Section 99(3): Where the debt for which an application has been	Not Applicable
	filed by a creditor is
	registered with the
	information utility, the debtor shall not be entitled to dispute the validity of such debt.
iv.	Section 99(4):	YES
	For the purposes of examining an application, the resolution professional may seek such further information or explanation in connection with the application as maybe	The Resolution Professional sought certain clarification/information from all the Financial Creditors through an E-mail dated 28.06.2022. Further RP also sought information from Personal Guarantor through E- mail dated 06.07.2022.

	required from the debtor or the creditor or any other person who, in the opinion of the resolution professional, may provide such information.
v.	Section 99(5): The person from whom information or explanation is sought under sub- section (4) shall furnish such information or explanation within seven days of receipt of the request.	YES E-mail received from the Applicant/Personal Guarantor through the counsel to the queries raised by the Resolution Professional through E- mail.
vi.	Section 99(6): The resolution professional shall examine the application and ascertain that - (a) the application satisfies the requirements set out in Section 94 or 95; (b) the applicant has provided information and given explanation sought by the resolution professional under sub- section(4).	YES RP submitted that the present application satisfies the requirements of provisions of Section 94 as has been provided in detail hereinabove in this report.
vii.	Section 99(7): After examination of the application under sub- section (6), he may recommend acceptance or rejection of the application in his report.	YES RP submitted that the present application satisfies the requirements of provisions of Section 94 as is required to be examined under Section 99(6) of the Code.

In the matter of Jai Shree Mishra, Cp (Ib) No. 39/94(1)/JPR/2022

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

In the matter of Jai Shree Mishra, Cp (Ib) No. 39/94(1)/JPR/2022

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

		The RP submitted that based on his examination the present application deserves to be admitted under Section 100 of the Code and this Hon'ble Authority may pass appropriate orders in this regard.
viii.	Section 99(8): Where the resolution professional finds that the debtor is eligible for a fresh start under Chapter II, the resolution professional shall submit a report recommending that the application by the debtor under Section 94 be treated as an application under Section 81 by the AdjudicatingAuthority.	Not Applicable The RP submitted that the provisions of Section 99(8) of the Code does not apply to the present case on hand. Application is filed by the debtor under Section 94 of the code.
ix.	Section 99(9): The resolution professional shall record the reasons for recommending the acceptance or rejection of the application in the report under sub-section (7).	YES RP submitted that the present report is being presented under Section 99(7) of the Code to this Hon'ble NCLT with a recommendation of accepting the present application as the Personal Guarantor/debtor has not repaid the debt due to the Creditors.
x.	Section 99(10): The resolution professional shall give a copy of the report under sub-section (7) to the debtor or the creditor, as the case maybe.	YES RP submitted that he has complied with the requirement of filing a copy of this report prepared under Section 99(7) of the Code to the Creditor. Copy of the said email dated 08.07.2022 servingcopyof the Report