# In the matter of Mr. Babumanoharan Vs. Indian Bank & Ors. Company Appeal (AT) (Insolvency) No. 503 of 2020

> NCLAT judgment dated 2022-03-31. Citation: TCN-2022-NCLAT-00560. The appeal was filed against the order of the Adjudicating Authority (National Company Law…

- **Court:** NCLAT
- **Order date:** 31 Mar 2022
- **Citation:** TCN-2022-NCLAT-00560
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-babumanoharan-vs-indian-bank-ors-company-appeal-10251251

## Summary

### Background

The appeal was filed against the order of the Adjudicating Authority (National Company Law Tribunal, Division Bench, Chennai) in IBA No. 685 of 2019, dated 10.10.2019, which allowed the application of the first respondent filed under Section 7 of the I&B Code, 2016, and appointed an Interim Resolution Professional (IRP) to conduct the Corporate Insolvency Resolution Process (CIRP) of the second respondent. The appellant, a former director of the second respondent, argued that proceedings against the corporate guarantor were not maintainable given ongoing proceedings against the principal borrower. The respondents contended that the appeal was time-barred and that simultaneous proceedings against the principal borrower and corporate guarantor were permissible under

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## Facts

The appellant, Mr. Babumanoharan, filed an appeal against the order of the National Company Law Tribunal (NCLT), Chennai, which initiated Corporate Insolvency Resolution Process (CIRP) against M/s Jeppiaar Cements Pvt. Ltd. (the second respondent), a corporate guarantor. The first respondent, Indian Bank, had filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s Jeppiaar Cements Pvt. Ltd. due to a default in payment of a term loan of Rs. 92.50 Crore by M/s Jeppiaar Power Corporation Ltd., the principal borrower. The appellant, a former director of M/s Jeppiaar Cements Pvt. Ltd., argued that the CIRP against the corporate guarantor was not maintainable because proceedings against the principal borrower were already ongoing. Indian

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## Issues and analysis

### Issue 1: Whether the Appeal is filed within …

**Ratio:** Section 61 of the I&B Code prescribes a 30-day limitation period for filing an

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**Reasoning:** The Tribunal noted that the Appellant was aware of the order being passed by the

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**Interpretation:** The limitation period for filing an appeal under Section 61 of the I&B Code

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**Application:** The Appellant's claim of receiving the certified copy only on 27.02.2020 was

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## Parties

- **Judges:** KanthiNar…; M. Venu…
- **Appellants:** Babumano…
- **Respondents:** Jeppiaar Cements…; Indian…

## Timeline

- **2019-10-10 — NCLT Ord…**: Adjudicating Authority (NCLT) passed an order allowing the application of the first…
- **2019-10-10 — Order Del…**: The order was delivered on 10.10.2019 and the certified copies of the same were made…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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