Personal and individual assets of a Director is not the subject matter of the corporate insolvency resolution process and the moratorium only extends to the assets of the Corporate Debtor- Suresh Chand Garg Vs. Aditya Birla Finance Ltd.- NCLAT

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I. Case Reference

Case Citation : [2018] ibclaw.in 38 NCLAT
Case Name : Suresh Chand Garg Vs. Aditya Birla Finance Ltd.
Company Appeal : Company Appeal (AT) (Insolvency) No. 130 of 2018
Appellant(s) : Suresh Chand Garg
Respondent(s) : Aditya Birla Finance Ltd.
Order Date : 23-Jul-18
NCLAT Bench : New Delhi

II. Brief about the decision

The personal and individual assets of a Director is not the subject matter of the corporate insolvency resolution process and the moratorium only extends to the assets of the Corporate Debtor.

III. Full text of the judgment

This appeal has been preferred by Mr. Suresh Chand Garg, Director of the Garg Inox Limited (Corporate Debtor) against order dated 27th February 208 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, whereby application preferred by him has been dismissed with the observations made therein.

Learned counsel appearing on behalf of the appellant submits that some of the properties belongs to the appellant – Director of the ‘Corporate Debtor’ and therefore, M/s Aditya Birla Finance Limited should be directed to withdraw the notice issued by it under SARFAIESI Act 2002.

We have heard learned counsel appearing on behalf of the appellant and the ‘financial creditor’.

From the record, we find that the personal and individual assets of a Director is not the subject matter of the ‘corporate insolvency resolution process’ and the moratorium only extends to the assets of the ‘Corporate Debtor’. This has also been held by the Adjudicating Authority.

For the reason aforesaid no interference is called for. The appeal is accordingly dismissed. No cost.

(Justice S.J. Mukhopadhaya)

Chairperson

(Justice Bansi Lal Bhat)

Member(Judicial)

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