NCLT Kolkata Initiates Insolvency Process Against The Personal Guarantor Of Gontermann-Pipers (India) Ltd.

The National Company Law Tribunal ("NCLT"), Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri Harish Chander Suri (Technical Member), while adjudicating a petition filed in UCO Bank v Vinod Kumar Mittal, has initiated Insolvency Resolution Process against Mr. Vinod Kumar Mittal, who is the Personal Guarantor to the loan sanctioned to Gontermann-Pipers (India) Limited by UCO Bank. The order was passed on 27.06.2022. Factual Background Incorporated in 1966, Gontermann-Pipers (India) Limited was a technical collaboration between Mr. H.K. Nathani of Calcutta and Gontermann-Peipers GmBH, Germany, the latter being a leading European manufacturer of rolling mill rolls since 1825. GPIL was a leading manufacturer of iron and steel rolls in India and is presently undergoing liquidation proceedings. Mr. Vinod Kumar Mittal ("Personal Guarantor") is one of the Directors of GPIL and had furnished Personal Guarantee before UCO Bank in relation to the credit facilities availed by GPIL from the said Bank. When GPIL failed to repay the credit facilities, UCO Bank filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the NCLT Kolkata ("Adjudicating Authority"), seeking initiation of Insolvency Resolution Process ("Insolvency Process") against Mr. Vinod Kumar Mittal, the Personal Guarantor in the concerned credit facilities. The Adjudicating Authority vide an order dated 23.09.2021 had appointed a Resolution Professional to file a report under Section 99 of IBC. The Resolution Professional filed the said report and recommended that the petition under Section 95 of IBC must be admitted based on the following grounds: The Personal Guarantor committed default in payment of the monies to the Bank as agreed upon.The debts mentioned in the application are qualifying debts, and not excluded debts. The application is accompanied with details and documents as mentioned in Section 95(4).The Applicant Bank has provided copy of the application to the Personal Guarantor.The application has been duly filed in the prescribed Form–C with the requisite fees – satisfied the requirement under Section 95(6). The Personal Guarantor is not eligible under Section 80 for a Fresh Start Process as provided under Part III Chapter II of IBC. Decision Of The Adjudicating Authority The Adjudicating Authority observed that the Resolution Professional's report did not put forth any request for conducting negotiations between the debtor and creditors for arriving at the repayment plan. Therefore, the petition filed under Section 95 of the IBC was admitted and Insolvency Process was initiated against the Personal Guarantor. Mr. Partha Kamal Sen has been appointed as the Resolution Professional. Case Title: UCO Bank v Vinod Kumar Mittal, C.P.(IB)/24(KB)2021 Counsel For Financial Creditor: Mr. Rahul Auddy, Adv. Counsel For Personal Guarantor: Mr. Jishnu Chowdhury, Adv. Ms. Shruti Swaika, Adv. Ms. Rashmi Bothra, Adv. Click Here To Read/Download Order

NCLT Kolkata Initiates Insolvency Process Against The Personal Guarantor Of Gontermann-Pipers (India) Ltd.

Pallavi Mishra

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