In the matter of Indian Bank vs. Anoop Kumar Wadhera,
- CitationC.P. (IB)/798(MB)2024
Ratio decidendi
The rule this decision rests on
The Tribunal's order rests on the following reasoning. Under Section 95 of the Code, read with the Personal Guarantor Rules, the financial creditor's petition is to be examined by a resolution professional appointed by the Adjudicating Authority, who must report within the time prescribed on whether the application should be approved or rejected, with that report served on both the financial creditor and the personal guarantor. The Tribunal holds that, on the material before it, service of the demand notice by registered post acknowledgment due and service of the petition at the personal guarantor's last known address satisfy the requirements of Section 95 at this preliminary stage, so that the matter may proceed to appointment of a resolution professional. Upon filing of such an application, the interim moratorium under Section 96(1)(a) commences on the date of filing and ceases on admission; during its subsistence, pending legal proceedings in respect of any debt stand stayed and creditors are barred from initiating fresh legal action in respect of any debt.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ORDER SHEET OF THE HEARING ON 18.11.2024 NAME OF THE PARTIES: INDIAN BANK V/s ANOOP KUMAR WADHERA UNDER SECTION 95(1) OF INSOLVENCY AND BANKRUPCTY CODE, 2016 ORDER 1. Ms. Kadambani Patil, Ld. Counsel for the Financial Creditor present. None present for the Financial Creditor. 2. This is a Company Petition filed by Indian Bank (erstwhile Allahabad Bank) (“the Financial Creditor”), under Section 95 of the Insolvency & Bankruptcy Code, 2016 (IBC) 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 seeking to initiate Personal Insolvency Resolution Process (CIRP) against Mr. Anoop Kumar Wadhera, the Personal Guarantor.
3. Ld. Counsel for the Financial Creditor submits that the copy of Demand Notice dated 22.11.2023 was successfully delivered upon the Personal Guarantor on 28.11.2023 though RPAD and copy of Petition was also served upon the Personal Guarantor on their last known correct address and the requirement u/s 95 of the Code is completed.
4. Ld. Counsel for the Financial Creditor submits that in pursuance to the directions contained in the order dated 25.10.2024, the Petition was served upon the Insolvency and Bankruptcy Board of India.
5. This bench appoints Mr. Anuj Kumar Tiwari, having registration number IBBI/IPA-002/IP-N00811/2019-20/12555, Email: anujtiwarics@gmail.com; Mob: 9794051011 as the Resolution Professional (RP) in the matter. The fee payable to Resolution Professional (RP) shall be in accordance with the Insolvency and Bankruptcy Board of India (IBBI) Regulations/Circulars/ Directions issued in this regard.
6. The Resolution Professional shall examine the Application within 10 days from the date of his appointment and submit its report to the Adjudicating Authority recommending for approval or rejection of the Application as referred under section 99(1) of the Code. The RP is also directed to serve the copy of report on both the sides Financial Creditor as well as the Personal Guarantor and file proof of service of report.
7. This Bench also directs for an advance payment of Rs.2,00,000/- (Rupees two lakh only) to be paid by the Financial Creditor to the Resolution Professional (RP) immediately to initiate the process which shall be adjusted towards the fee and expenses payable to the Resolution Professional (RP).
8. The interim-moratorium under Section 96(1) (a) of the Insolvency and Bankruptcy Code, 2016 has commenced on the date of filing of this application by the Financial Creditor and will cease to have effect on the date of admission.
9. During such interim-moratorium period - a. any legal action or proceeding pending in respect of any debt shall be deemed to have been stayed; and b. the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt.
Sd/- Sd/- PRABHAT KUMAR JUSTICE VIRENDRASINGH BISHT MEMBER (TECHNICAL) MEMBER (JUDICIAL)
Rohit Nanepag
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free