NCLT Delhi Bench Appoints Resolution Professional In Self-Initiated Insolvency Application Under Section 94(1) IBC

The National Company Law Tribunal Court-V, New Delhi bench of Mahendra Khandelwal (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) has appointed a Resolution Professional in an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016. The Personal Guarantor approached the bench for insolvency proceedings to be initiated against himself. Brief Facts: Kishan Aggarwal, the Personal Guarantor of M/s Ambica Timber Trade Private Limited (Corporate Debtor in Liquidation), approached the NCLT for the initiation of the Insolvency Resolution Process (IR Process). The petition was made pursuant to Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution process for Personal Guarantors to Corporate Debtor) Rules, 2019, and regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. Mr. Aggarwal sought insolvency resolution against himself. The records indicated that proper notification was served to the Financial Creditor, Union Bank of India. Furthermore, Mr. Aggarwal has put forward the name of Mr. Manish Santosh Buchasia to serve as the Resolution Professional. Observations by the NCLT: The NCLT referred to the decision of the Supreme Court in Dilip B Jiwrajka Vs. Union of India & Ors. where the SC examined the constitutional validity of Sections 95-100 of the Insolvency and Bankruptcy Code, 2016 (IBC). The SC held that no judicial adjudication is involved in the stages outlined in Sections 95-99 of the IBC. Furthermore, the SC held that no hearing is mandated by the Adjudicating Authority during the appointment of a Resolution Professional under Section 97(5) of the IBC. Therefore, the NCLT appointed Mr. Buchasia as the Resolution Professional. The Resolution Professional was instructed to submit the Assignment Declaration within seven days from the date of the decision to the Registry for official record-keeping. Moreover, the Resolution Professional was directed to diligently fulfill his obligations by submitting his report as required under Section 99 of the IBC. It was mandated that a copy of the report prepared by the resolution professional under Section 99 of the IBC shall be promptly filed and furnished to both the Personal Guarantor, Mr. Aggarwal, and the Financial Creditors. Case Title: In The Matter Of Mr. Siri Kishan Aggarwal Case Number: CP IB NO. 403/ND/2023 Advocate for the Petitioner: Mr. Pranjit Bhattacharya, Adv., Ms. Raj Sarit Khare, Adv. Advocate for the Respondent: Mr. Arjun Parashar, Adv Date of Judgment: 07.06.2024 Click Here To Read/Download Order or Judgment

NCLT Delhi Bench Appoints Resolution Professional In Self-Initiated Insolvency Application Under Section 94(1) IBC

Rajesh Kumar

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