Satheesh Babu V.K Vs Dileep K.P (NCLAT Chennai)
These proceedings comprise a batch of six company appeals filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, before the National Company Law Appellate Tribunal, Chennai. The primary appeals—Comp App (AT) (CH) (Ins) Nos. 424, 425, 426, and 427 of 2023—were preferred by four personal guarantors who challenged a common order dated 13.10.2023 passed by the Adjudicating Authority. The impugned order arose from applications filed by the Resolution Professional under Section 114 of the Code, read with Regulations 20 and 22 of the 2019 Regulations, on the ground that no repayment plans had been submitted by the personal guarantors as required under Section 105.
The insolvency resolution process against the appellants, who were personal guarantors to a corporate debtor, had been initiated pursuant to applications filed by a financial creditor under Section 95 of the Code. Following the appointment of an Interim Resolution Professional and admission of the applications on 22.06.2022, a public announcement was issued on 29.06.2022 inviting claims. Claims were admitted in respect of two creditors, and the personal guarantors were repeatedly called upon to submit repayment plans. Despite extensions, including additional time granted due to a stay obtained by another guarantor and the pendency of liquidation proceedings of the corporate debtor, no repayment plans were submitted.
