# In the matter of Paresh Parekh & Ors. vs. Alchemist Asset Reconstruction Co. Ltd. & Ors.

> NCLAT judgment dated 2024-08-20. Citation: TCN-2024-NCLAT-00248. The appeals were filed under Section 61 of the Insolvency and Bankruptcy Code 2016 by the…

- **Court:** NCLAT
- **Order date:** 20 Aug 2024
- **Citation:** TCN-2024-NCLAT-00248
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/paresh-parekh-ors-vs-alchemist-asset-reconstruction-co-ltd-ors-8159d382

## Summary

### Background

The appeals were filed under Section 61 of the Insolvency and Bankruptcy Code 2016 by the Appellants against orders dated 30.04.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench-II). The Adjudicating Authority admitted Section 95 petitions filed by Alchemist Asset Reconstruction Company Limited-Financial Creditor and initiated Insolvency Process against the Appellants-Personal Guarantors (Paresh Parekh and Manish Patel). The Appellants are Personal Guarantors of the Corporate Debtor-Sort India Enviro Solutions Ltd. Alchemist Asset Reconstruction Company Limited-Financial Creditor filed applications under Section 95 of IBC against both the Personal Guarantors.

## Facts

Sort India Enviro Solutions Ltd. (SIESL)-Corporate Debtor entered into a Working Capital Agreement and Term Loan Agreement with RBL Bank Ltd. on 28.11.2015. The Corporate Debtor and its Personal Guarantors (Paresh Parekh and Manish Patel) executed documents securing credit facilities not exceeding Rs.32.30 crore. A Deed of Guarantee was executed on 28.11.2015 and 17.10.2016 by the PG to repay the debt in case of default. On 12.11.2016, a Put Option Agreement was entered into between the Corporate Debtor, RBL Bank, PG, and Agnus Capital LLP. The Corporate Debtor defaulted, and the loan account was declared NPA on 31.05.2018. An Assignment Agreement was executed on 28.06.2018 by RBL Bank with Alchemist Asset Reconstruction Company Limited-Respondent No.1/Financial

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## Issues and analysis

### Issue 1: Whether there has been denial of natural justice to …

**Ratio:** The application of principles of natural justice requires to be determined in the

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**Reasoning:** The Adjudicating Authority allowed the Appellant to file written submissions. The RP had

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**Interpretation:** The NCLAT interpreted that the Adjudicating Authority acted within the

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**Application:** The NCLAT found no infirmity in the Adjudicating Authority's endeavor to

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Paresh P…
- **Respondents:** Sort India Enviro…; Alchemist Asset…
- **Advocates:** Atul S…; Mitika Ag…; +1 more

## Timeline

- **2015-11-28 — Working Capital and…**: Sort India Enviro Solutions Ltd. entered into a Working Capital Agreement and Term Loan…
- **2015-11-28 — Deed of Gua…**: Deed of Guarantee executed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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