Aarti Singal Vs State Bank of India (NCLAT Delhi)
NCLAT Delhi held that appeal against an order of NCLT initiating insolvency resolution process of personal guarantor lays to NCLAT. Thus, personal guarantor eligible to file an appeal u/s. 61 of IBC against order issued u/s. 100.
Facts- The present appeals by personal guarantors of the corporate debtor M/s. Bhushan Power and Steel Limited have been filed challenging the order passed by the adjudicating authority (National Company Law Tribunal, Principal Bench, New Delhi) admitting Section 95 application filed by the State Bank of India (SBI) against the personal guarantors. Order by adjudicating authority has been passed under Section 100 of the Insolvency and Bankruptcy Code, 2016 directing for admission of petition and initiation of insolvency resolution process against the personal guarantors.
Conclusion- In the present case, SBI Respondent has filed Section 95(1) application before NCLT due to the reason that for insolvency resolution process of personal guarantors, it is the NCLT which is the forum. When SBI has invoked Section 60(1) for forum for proceeding against the personal insolvency resolution process, which order is appealable under Section 61.
Hon’ble Supreme Court in the case of Embassy Property Developments Pvt. Ltd. Vs. State of Karnataka & Ors. has held that insofar as insolvency resolution of corporate debtors and personal guarantors are concerned, any order passed by the NCLT is appealable to Nclat under Section 61 of the IBC, 2016 and the orders of the Nclat are amenable to the appellate jurisdiction of this Court under Section 62.
