Solapur Janata Sahakari Bank Limited Vs Mukund Pandharinath Kulkarni (NCLT Mumbai)
The Application was filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, by the Financial Creditor seeking initiation of the insolvency resolution process against the Personal Guarantor of a Corporate Debtor. The claimed debt amounted to ₹14.75 crore as of 30 September 2021, with defaults dated 31 March 2017 and 13 December 2016. The Corporate Debtor had been sanctioned STOS facilities of ₹6 crore in August 2015 and a Cash Credit (Pledge) Loan of ₹9 crore in March 2016. The Personal Guarantor executed guarantee deeds for both facilities. Following defaults, the Financial Creditor issued a Section 13(2) SARFAESI notice in November 2017 to the Corporate Debtor, guarantors, and mortgagors. CIRP was initiated against the Corporate Debtor in January 2019, and a demand notice under the 2019 Rules was issued to the Personal Guarantor in November 2021.
A Resolution Professional (RP) was appointed in April 2022 and recommended admission of the Application. The Personal Guarantor contested maintainability, stating that the Financial Creditor had pursued proceedings under the Multi-State Co-operative Societies Act and SARFAESI, allegedly amounting to forum shopping, and argued that the mortgaged properties of other guarantors were valued higher than the outstanding dues. Additional defences included limitation under the Limitation Act, non-service of invocation of guarantee, failure to disclose prior proceedings, and res judicata. He also argued that his guarantee stood released upon approval of the Corporate Debtor’s Resolution Plan in January 2021.
