Ujwal Gupta Vs Union Bank of India (NCLAT Delhi)
NCLAT Delhi held that demand notice under section 13(2) of the SARFAESI Act is a valid notice of invocation of personal guarantee for the Insolvency proceeding. Accordingly, appeal is dismissed.
Facts- Instant appeal has been preferred by the Appellant (Personal Guarantor) under Section 61 of the Insolvency and Bankruptcy Code, 2016 assailing the order dated 10.09.2024 (impugned order) passed by the NCLT, New Delhi, Bench –III (Adjudicating Authority) whereby I.A No. 2253 of 2024 filed by the RP/Respondent No. 2 was disposed of and CP (IB) No. 26 of 2024 filed by the Union Bank of India (Financial Creditor) under Section 95 of the Code was admitted and personal insolvency was initiated against the Appellant/Personal Guarantor.
Conclusion- Held that notice dated 29.02.2016, given by the financial creditor under Section 13(2) of the SARFAESI Act has sufficiently indicated the Appellant to discharge his liability for the amount mentioned in the notice of which the credit facilities were extended to the CD and simply by the fact that word ‘director’ has been suffixed after the name of the Appellant/Personal Guarantor, the same will not be sufficient to change the character of the Appellant from the guarantor of the CD and therefore, in our considered opinion, the personal guarantee has been rightly considered by the Tribunal to have been invoked by issuance of this notice given under Section 13(2) of the SARFAESI Act and we do not find any illegality therein. Thus, we are of the considered opinion that there is no good ground exists on the basis of which any interference may be made in the impugned judgment and resultantly, the appeal lacks merit and is dismissed as such.
