Mohit Dewan vs Bank Of Maharashtra & Anr

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Comp. App. (AT) (Ins) No. 2176 of 2024 & I.A. No. 8129 of 2024 IN THE MATTER OF: Mohit Dewan ...Appellants Versus Bank of Maharashtra & Anr. ...Respondents

Present:

For Appellant : Mr. Aditya Grover, Mr. Gautam Singh and Mr. Naman Chawla, Advocates. For Respondents : Mr. Viren Sharma, Advocate for R1.

WITH Comp. App. (AT) (Ins) No. 2177 of 2024 & I.A. No. 8133 of 2024 IN THE MATTER OF: Kamal Kant Dewan ...Appellants Versus Bank of Maharashtra & Anr. ...Respondents

Present:

For Appellant : Mr. Aditya Grover, Mr. Gautam Singh and Mr. Naman Chawla, Advocates. For Respondents : Mr. Viren Sharma, Advocate for R1.

ORDER

(Hybrid Mode)

22.11.2024: These two appeals have been filed challenging the order

passed by National Company Law Tribunal, Chandigarh Bench by which

Section 95 application filed by the appellant who was the personal guarantors

have been admitted.

2. Ld. Counsel for the appellant challenging the order Impugned initiating

CIRP against personal guarantors submits that there was an OTS proposal

submitted by principal borrower which was approved by the bank for total

payment of Rs. 7 crores and out of said Rs.7 crores, amount of Rs.1.75 was

already paid which was recorded in the OTS entered between the parties which

was subject to consent by the DRT where application was pending. He submits

that however the bank has back track from the OTS due to which the OTS

could not be fructified. The borrower has already filed a writ petition before the

Punjab & Haryana High Court challenging the action of the bank from back

tracking of the OTS which is under consideration. He submits that in view of

the aforesaid facts, the personal insolvency against the appellant would not be

allowed to continue.

3. We have considered submissions of counsel for the appellant and

perused the records. There is no dispute to the preposition that in event bank

accepts the OTS against the principal borrower and the entire amount is

satisfied the liability of the guarantor shall also come to an end. However,

which issue is under consideration before the High Court thus, as on date the

debt is not even satisfied by the principal borrower hence the liability of the

personal guarantor cannot be set to be wiped out.

4. We thus do not find any error in initiation of personal insolvency against

the appellant, however, it shall always open for the appellant to place such

material before the Adjudicating Authority in event any order of the High Court

Comp. App. (AT) (Ins) Nos. 2176 & 2177 of 2024 2 of 3 favourable to the principal borrower is passed which shall be taken due

consideration in the personal insolvency of the guarantors also. With these

observations, we dismiss the appeal.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) harleen/NN

Comp. App. (AT) (Ins) Nos. 2176 & 2177 of 2024 3 of 3