# In the matter of Vinod Sehwag Vs. Siemens Financial Services Pvt. Ltd. & Anr. Comp. App. (AT) (Ins) No. 464 & 465 of 2021

> NCLAT judgment dated 2021-08-27. Citation: TCN-2021-NCLAT-00112. This case involves an appeal filed by Vinod Sehwag, the Personal Guarantor of Xalta Foods &…

- **Court:** NCLAT
- **Order date:** 27 Aug 2021
- **Citation:** TCN-2021-NCLAT-00112
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vinod-sehwag-vs-siemens-financial-services-pvt-ltd-anr-comp-app-69bffb96

## Summary

### Background

This case involves an appeal filed by Vinod Sehwag, the Personal Guarantor of Xalta Foods & Beverages Pvt. Ltd., against impugned orders dated March 22, 2021, and June 9, 2021, passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-II) in CP No. (IB)-116(ND)2021. The Adjudicating Authority had appointed Respondent No.2 as the Resolution Professional and directed the Resolution Professional to make recommendations along with the reasons in writing for acceptance or rejection of the Application filed under Section 95(1) of the IBC r/w Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019. The Appellant contended that the action was initiated under Section 95 of the IBC without proper notice, violating the principles of natural

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## Facts

Vinod Sehwag, the Personal Guarantor of Xalta Foods & Beverages Pvt. Ltd., filed an appeal against two orders passed by the National Company Law Tribunal (NCLT), New Delhi. The first order, dated March 22, 2021, was issued in a motion under Section 95 of the Insolvency and Bankruptcy Code (IBC), appointing a Resolution Professional. The second order, dated June 9, 2021, rejected the Appellant's application to set aside the earlier order, claiming lack of notice. The Appellant argued that the Tribunal's actions violated the principles of natural justice. The NCLT had already concluded that there was a default in repayment of the loan for which the personal guarantee was given. The Appellant contended that the Adjudicating Authority prematurely concluded that there

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in making a finding of default before the matter was taken …

**Ratio:** The stage for considering default arrives when the matter is taken up under Section 100

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**Reasoning:** The court referred to its judgment in 'Mr. Ravi Ajit Kulkarni vs. State Bank of India',

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**Interpretation:** Section 100 of the IBC outlines the procedure for admitting or rejecting an

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**Application:** The court applied this ratio to the present case, holding that the Adjudicating

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## Parties

- **Judges:** A.I.S. C…; Alok Sriv…
- **Appellants:** Vinod S…
- **Respondents:** Xalta Foods &…; Siemens Financial…

## Timeline

- **2021-03-22 — First Impugne…**: Adjudicating Authority passed the first impugned order appointing a Resolution…
- **2021-06-09 — Second Impugn…**: Adjudicating Authority rejected the Appellant's…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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