Asha Basantilal Surana Vs State Bank of India & Ors. (NCLAT Delhi)
NCLAT Delhi held that where Notice under Section 13(2) of SARFAESI Act, 2002 makes a demand as per the Guarantee Agreement between the parties, the Notice has to be treated as notice for invocation of Personal Guarantee. Thus, order rejecting application u/s. 94(1) for initiation of personal insolvency against personal guarantor not sustainable.
Facts- The Principal Borrower- ‘M/s. Surana Metacast (India) Private Limited’ obtained various credit facilities for the business purposes from the State Bank of India and other Financial Creditors i.e. Respondents herein. Appellant executed Deed of Personal Guarantee dated 12.11.2021 in relation to the credit facilities availed by the Principal Borrower. The loan account of the principal borrower was declared NPA on 01.05.2023. A notice u/s. 13(2) of the SARFAESI Act, 2002 was issued on 09.10.2023 to the principal borrower as well as to the Appellant personal guarantor demanding repayment of Rs.28,56,64,336.06/- as on 07.10.2023 with interest. Respondent Nos.2 and 3 similarly issued notice u/s. 13(2) of the SARFAESI Act, 2002 and demanded amount from the Appellant. State Bank of India obtained an order on 06.04.2024 u/s. 14 of the SARFAESI Act, 2002 for taking possession of the secured assets.
