The appellant, a personal guarantor to BRG Energy Ltd., challenged an order by the NCLT Hyderabad. The NCLT had admitted the appellant's application under Section 122(1) of the I&B Code, declared her bankrupt under Section 126, and ordered subsequent actions. The appellant's grievance stems from an observation in the order that exempts penalties imposed by SEBI from the bankruptcy proceedings, classifying them as 'fine' and thus an 'excluded debt' under Section 79(15)(a) of the I&B Code. The appellant had initially filed a company petition under Section 94(1) of the I&B Code, seeking initiation of the Insolvency Resolution Process for a debt of Rs. 1,26,39,01,667.50/-. The Committee of Creditors rejected the repayment plan, leading to the bankruptcy proceedings.
Mrs. G.V. Marry, a personal guarantor to BRG Energy Ltd., faced bankruptcy proceedings initiated after her repayment plan was rejected by the Committee of Creditors. She had initially filed a company petition seeking initiation of the Insolvency Resolution Process for a debt of Rs. 1,26,39,01,667.50/-. The NCLT Hyderabad admitted her application under Section 122(1) of the I&B Code and declared her bankrupt. A key point of contention was the NCLT's observation that penalties imposed by SEBI were 'excluded debt' under Section 79(15)(a) of the I&B Code. This meant that the SEBI penalty would not be subject to the bankruptcy proceedings. The appellant challenged this observation, arguing that it conflicted with a decision by the High Court of Telangana. The
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Ld. NCLT Hyderabad passed an order in…
The Learned Adjudicating Authority rejected…
The appellant, a personal guarantor to BRG Energy Ltd., challenged an order by the NCLT Hyderabad. The NCLT had admitted the appellant's application under Section 122(1) of the I&B Code, declared her bankrupt under Section 126, and ordered subsequent actions. The appellant's grievance stems from an observation in the order that exempts penalties imposed by SEBI from the bankruptcy proceedings, classifying them as 'fine' and thus an 'excluded debt' under Section 79(15)(a) of the I&B Code. The appellant had initially filed a company petition under Section 94(1) of the I&B Code, seeking initiation of the Insolvency Resolution Process for a debt of Rs. 1,26,39,01,667.50/-. The Committee of Creditors rejected the repayment plan, leading to the bankruptcy proceedings.
Mrs. G.V. Marry, a personal guarantor to BRG Energy Ltd., faced bankruptcy proceedings initiated after her repayment plan was rejected by the Committee of Creditors. She had initially filed a company petition seeking initiation of the Insolvency Resolution Process for a debt of Rs. 1,26,39,01,667.50/-. The NCLT Hyderabad admitted her application under Section 122(1) of the I&B Code and declared her bankrupt. A key point of contention was the NCLT's observation that penalties imposed by SEBI were 'excluded debt' under Section 79(15)(a) of the I&B Code. This meant that the SEBI penalty would not be subject to the bankruptcy proceedings. The appellant challenged this observation, arguing that it conflicted with a decision by the High Court of Telangana. The
…Ld. NCLT Hyderabad passed an order in…
The Learned Adjudicating Authority rejected…