# In the matter of R.Malliga & Ors. vs. The Deputy General Manager & Ors.

> HC judgment dated 2024-10-14. Citation: TCN-2024-HC-00021. The writ petition was filed challenging an order dated 27.11.2018, bearing No.SAMB/CBE/CLOII/1193,…

- **Court:** HC
- **Order date:** 14 Oct 2024
- **Citation:** TCN-2024-HC-00021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/rmalliga-ors-vs-the-deputy-general-manager-ors-0ff4f951

## Summary

### Background

The writ petition was filed challenging an order dated 27.11.2018, bearing No.SAMB/CBE/CLOII/1193, issued by the first respondent (State Bank of India), enclosing the minutes of the meeting of the Review Committee on Willful Defaulters dated 10.10.2018, and the decision of the First Committee dated 18.06.2018. The petitioners, promoters/directors of M/s.Veesons Energy Systems Private Limited, stood as personal guarantors for a loan advanced by the first respondent. The company defaulted in repaying the loan, leading the bank to declare the petitioners as willful defaulters.

## Facts

The petitioners, R.Malliga and V.Ramakrishnan, were the promoters/directors of M/s.Veesons Energy Systems Private Limited. They stood as personal guarantors for a loan advanced by the State Bank of India (first respondent). The company defaulted on the loan repayment. Consequently, the first respondent declared the petitioners as willful defaulters via an order dated 27.11.2018. The petitioners challenged this order through a writ petition. The first respondent argued that the matter was under consideration by the NCLT, and a moratorium order had been passed under Section 95 of the Insolvency and Bankruptcy Code, 2016. The petitioners contended that they were not given an opportunity by the Review Committee before being declared willful defaulters.

## Issues and analysis

### Issue 1: Whether the writ petition challenging the order declaring the petitioners as willful defaulters can …

**Ratio:** When a moratorium order is passed under Section 95 of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court reasoned that since the NCLT had already seized the matter and a moratorium

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**Interpretation:** Section 95 of the Insolvency and Bankruptcy Code, 2016, provides for a

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**Application:** In this case, the moratorium order under Section 95 of the IBC meant that the

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## Parties

- **Judges:** M.DHAND…
- **Appellants:** R.Mal…
- **Respondents:** M/s. Veesons…; THE DEPUTY…

## Timeline

- **2018-10-10 — Review Committe…**: Meeting of the Review…
- **2018-06-18 — First Committee…**: Decision of the First…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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