The case involves two connected Company Appeals challenging the Impugned Orders passed by the NCLT, Chennai, under Section 95(1) of the I&B Code, 2016. The Appellants, acting as personal guarantors, contested the appointment of the Resolution Professional, arguing it violated Section 97 of the I&B Code. The corporate debtor, ARS Energy Private Limited, had availed financial assistance secured by a Personal Guarantee Deed executed by the Appellants. Canara Bank, the lead bank of the consortium of banks, initiated proceedings under Section 95 of the I&B Code after the corporate debtor defaulted on loan repayments and the account was declared NPA.
ARS Energy Private Limited (Corporate Debtor) executed a Personal Guarantee Deed on 2017-06-29 to secure financial assistance amounting to Rs.397.64 crores. This loan was availed from a consortium of banks led by Canara Bank (Respondent No.1). The total outstanding dues as of 2023-09-29 were Rs.305.22 crore. The Corporate Debtor defaulted on monthly installments, leading to the loan account being declared a Non-Performing Asset (NPA) on 2022-08-29. Canara Bank issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 2023-09-20, and a Possession Notice on 2023-12-02. The Corporate Debtor initiated proceedings under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal, challenging the possession notice. CIRP proceedings were not initiated.
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M/s. ARS Energy Private…
The loan account of ARS…
The case involves two connected Company Appeals challenging the Impugned Orders passed by the NCLT, Chennai, under Section 95(1) of the I&B Code, 2016. The Appellants, acting as personal guarantors, contested the appointment of the Resolution Professional, arguing it violated Section 97 of the I&B Code. The corporate debtor, ARS Energy Private Limited, had availed financial assistance secured by a Personal Guarantee Deed executed by the Appellants. Canara Bank, the lead bank of the consortium of banks, initiated proceedings under Section 95 of the I&B Code after the corporate debtor defaulted on loan repayments and the account was declared NPA.
ARS Energy Private Limited (Corporate Debtor) executed a Personal Guarantee Deed on 2017-06-29 to secure financial assistance amounting to Rs.397.64 crores. This loan was availed from a consortium of banks led by Canara Bank (Respondent No.1). The total outstanding dues as of 2023-09-29 were Rs.305.22 crore. The Corporate Debtor defaulted on monthly installments, leading to the loan account being declared a Non-Performing Asset (NPA) on 2022-08-29. Canara Bank issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 2023-09-20, and a Possession Notice on 2023-12-02. The Corporate Debtor initiated proceedings under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal, challenging the possession notice. CIRP proceedings were not initiated.
…M/s. ARS Energy Private…
The loan account of ARS…