Repayment Plan Rejected

Since no repayment plan has been received from the Personal Guarantor, the NCLT invokes the provision under Section 115(2) of IBC to allow the application for bankruptcy to be filed – State Bank of India Vs. Savita Lohariwal – NCLT Kolkata Bench

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Since no repayment plan has been received from the Personal Guarantor, the NCLT invokes the provision under Section 115(2) of IBC to allow the application for bankruptcy to be filed – State Bank of India Vs. Savita Lohariwal – NCLT Kolkata Bench Read Post »

Is it required to issue notice to Personal Guarantor while passing order under Section 115(2) of IBC when the Personal Guarantor did not submit Repayment Plan | Is Regulation 19 of Personal Guarantors Insolvency Regulation 2019 applicable even no Repayment Plan is submitted by Personal Guarantor – Sudip Dutta @ Sudip Bijoy Dutta Vs. Prashant Jain RP – NCLAT New Delhi

Hon’ble NCLAT held that:’
(i) The Personal Guarantor kept silence for years together and when consequential Order under Section 115 has been passed by the Adjudicating Authority, he is raising grievance of not being heard by the Adjudicating Authority.
(ii) Regulation 19 is not applicable in the facts of the present case nor Personal Guarantor can rely on Regulation 19.
(iii) No Repayment Plan having been submitted or finalised, Adjudicating Authority has not committed any error in giving liberty to the Creditors to file an Application for Bankruptcy under Chapter IV, which is a statutory consequence under Section 115(2). In so far as discharge of the RP is concerned, the discharge is also consequential to completion of Insolvency and Bankruptcy Process against the Personal Guarantor under the provisions of Chapter III of the Code.

Is it required to issue notice to Personal Guarantor while passing order under Section 115(2) of IBC when the Personal Guarantor did not submit Repayment Plan | Is Regulation 19 of Personal Guarantors Insolvency Regulation 2019 applicable even no Repayment Plan is submitted by Personal Guarantor – Sudip Dutta @ Sudip Bijoy Dutta Vs. Prashant Jain RP – NCLAT New Delhi Read Post »

NCLT permits Creditors for filing Bankruptcy application against Personal Guarantor to BRG Energy Ltd. – Maligi Madhusudhana Reddy RP – NCLT Hyderabad Bench

This application is filed by the Resolution Professional, under Section 114 of the Insolvency and Bankruptcy Code, 2016 seeking to pass an appropriate order under section 114 of the Insolvency and Bankruptcy Code, 2016 in view of the Repayment Plan being rejected by the Creditors. 

The Adjudicating Authority held that in view of the rejection of the repayment plan by the creditors after exercising their commercial wisdom, we deem it fit to permit the creditors to move the Tribunal for a Bankruptcy order by filing an appropriate application. With the above liberty to the creditors, we dispose of this application.

NCLT permits Creditors for filing Bankruptcy application against Personal Guarantor to BRG Energy Ltd. – Maligi Madhusudhana Reddy RP – NCLT Hyderabad Bench Read Post »

Repayment plan submitted by the Personal Guarantor is rejected by the Creditor – State Bank of India Vs. Uppalapati Venkata Rama Rao & VMC Systems Ltd. – NCLT Hyderabad Bench

In this case, the Personal Guarantor submitted the repayment plan to the Creditor and the same was rejected with a voting share of 74.32%. As per Section 111 of the IBC, the repayment plan submitted by the Personal Guarantor shall be approved by majority of three-fourth in value of the Creditor. Hence, it is clear that the said repayment plan was rejected by the Creditors. In view of the report the Insolvency Resolution process ordered against the Personal Guarantor is concluded. The creditors are at liberty to move an Application u/s 121 of the IB Code. The creditors are directed to pay the fee and expenses incurred by the RP as per the provisions of law.

Repayment plan submitted by the Personal Guarantor is rejected by the Creditor – State Bank of India Vs. Uppalapati Venkata Rama Rao & VMC Systems Ltd. – NCLT Hyderabad Bench Read Post »

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