Think Hard India Private Limited Vs Narendra Rajani (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench, dismissed a petition filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of insolvency proceedings against a personal guarantor of a corporate debtor. The Financial Creditor had claimed an outstanding debt of Rs. 4,12,55,03,018.89 as on 15 September 2022 and sought to proceed against the personal guarantor in relation to facilities extended to the corporate debtor.
According to the Financial Creditor, an interest-bearing secured business loan of up to Rs. 152 crore had been granted to the corporate debtor under a Loan Agreement dated 6 January 2020. The facilities were secured through an Additional Security Letter dated 20 July 2020, a Personal Guarantee dated 27 July 2020 executed by the respondent, and an Indenture of Mortgage dated 21 January 2020 over specified immovable property. Following alleged defaults by the corporate debtor, the Financial Creditor issued a Demand Notice in Form B dated 15 September 2022 under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. It was claimed that the notice had been received by the personal guarantor on 16 September 2022 and that no repayment or response had followed, leading to the filing of the present petition.
