# In the matter of G.V. Marry vs. Union Bank of India & Ors.

> NCLAT judgment dated 2025-04-30. Citation: TCN-2025-NCLAT-00077. The appellant, a personal guarantor to BRG Energy Ltd., challenged an order by the NCLT…

- **Court:** NCLAT
- **Order date:** 30 Apr 2025
- **Citation:** TCN-2025-NCLAT-00077
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gv-marry-vs-union-bank-of-india-ors-65c6b530

## Summary

### Background

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.

## Facts

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

…

## Issues and analysis

### Issue 1: Whether the penalty imposed by SEBI can be classified as a 'fine' and thus an 'excluded debt' under …

**Ratio:** Section 79(15)(a) of the I&B Code defines 'excluded debt' as including liabilities to

…

**Reasoning:** The court reasoned that the penalty imposed by SEBI is regulatory in nature and falls

…

**Interpretation:** The interpretation of Section 79(15)(a) hinges on whether the penalty imposed

…

**Application:** The court applied the ratio and reasoning to the specific facts by concluding

…

## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** MRS.G.V.…
- **Respondents:** BRG Energ…; Union Bank of…

## Timeline

- **2025-01-23 — NCLT Ord…**: Ld. NCLT Hyderabad passed an order in Company Petition CP(IB)No. 214/122/HDB/2022,…
- **2023-08-16 — Rejection of Repayment…**: The Learned Adjudicating Authority rejected the repayment plan and permitted the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 122(1) — Application by debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-122)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/gv-marry-vs-union-bank-of-india-ors-65c6b530