State Bank of India vs Mr. Akhilesh Kumar Singh

Rajesh Sharma Member (Technical)

The Court is convened through video conferencing today.

This is a Company Petition filed by State Bank of India, (“the Applicant”), 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 Mrs. Mamta Kishore Apparao (“the Personal Guarantor”).

This Company Petition is filed by the Applicant through Mr. Akhilesh Kumar Singh, the Assistant General Manager and Case Lead Officer-I claiming total outstanding of Rs.5,58,05,35,399.30/- (Rupees five hundred and fifty-eight crore five lakh thirty-five thousand three hundred ninety-nine and thirty paise only)

The Learned Counsel for the Applicant submits that the Petition bearing CP (IB)No. 54/2019 under section 9 of the Code was admitted against the Corporate Debtor on 24.04.2019.

The Learned Counsel for the Applicant further submits that the Liquidation order under section 33(1) of the Code was passed by the Adjudicating Authority on 26.09.2019 against the Corporate Debtor.

Demand Notice dated 30.09.2020 under Rule 7 (1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution of Personal Guarantor to Corporate Debtors) Rules, 2019 was issued to the Personal Guarantor claiming total outstanding of Rs.5,58,05,35,399.30/- (Rupees five hundred and fifty-eight crore five lakh thirty-five thousand three hundred ninety-nine and thirty paise only). The Said Demand Notice was served upon the Personal Guarantor via Email on 15.10.2020. However, the Personal Guarantor has not replied to the said Demand Notice.

The Petition was served upon the Personal Guarantor via Email on 26.10.2020.

ORDER

That this bench appoints Mr. Santanu T Ray, Insolvency Resolution Professional having Registration No. IIBI/IPA-002/IP-N00360/2017-2018/11055 Email-Id santanutray@aaainsolvency.com; 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.

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.

That this Bench also directs for an advance payment of Rs. 2,00,000/- (Rs. Two Lakhs 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).

The interim-moratorium under Section 96 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.

During such interim-moratorium period-

(i) any legal action or proceeding pending in respect of any debt shall be deemed to have been stayed; and

(ii) the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt

The registry is directed to immediately communicate this order to the Financial Creditor, Personal Guarantor, Corporate Debtor and Resolution Professional even by way of email. Compliance report of the order by designated Registrar is to be submitted today.