State Bank Of India vs Suresh Tyagi
- CitationCompany Appeal (AT) (Insolvency) No. 225 of 2025
Ratio decidendi
The rule this decision rests on
The filing of an application by a personal guarantor under Section 94 of the Insolvency and Bankruptcy Code, 2016 is not rendered ineffective, nor is the guarantor deprived of the remedy it provides, merely because secured creditor proceedings under the SARFAESI Act, 2002 have commenced and a sale notice has been issued before the application was filed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: State Bank of lndia ...Appellant Versus Suresh Tyagi ...Respondent
Present: For Appellant : Mr. Amrendra Kuamr Singh and Mr. Sanidhya Kumar, Advocates.
For Respondent :
ORDER
(Hybrid Mode)
25.02.2025 : Heard Counsel for the Appellant.
2. This Appeal has been filed against an Order dated 10.12.2024 passed
by the Adjudicating Authority (National Company Law Tribunal, New Delhi,
Court - III), by which Order, Adjudicating Authority has held the Application
under Section 94(1) filed by the Personal Guarantor as maintainable and
directed 27.01.2025 for further consideration.
3. Counsel for the Appellant submits hat Section 94 Application was filed
only to get away from proceeding under SARFAESI Act, 2002. Perusal of the
Order indicates that Bank has issued Notices under Section 13(2) and last
such Sale Notice was issued on 24.07.2024 and thereafter Section 94
Application was filed. Merely because proceeding under SARFAESI had
commenced and last Sale Notice was issued on 24.07.2024 cannot deprive
the Personal Guarantor to take remedy provided under Section 94.
4. We thus do not find any error in the Order of the Adjudicating Authority
holding the Application maintainable. It shall be open for the Appellant to
raise other contentions when the Appeal is heard on merits in accordance
with the law. It shall be open for the Appellant to request the Court to decide
the Application at an early date.
With the aforesaid, Appeal dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) himanshu/nn
Comp. App. (AT) (Ins.) No. 225 of 2025 2 of 2
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