These appeals challenge the initiation of insolvency proceedings against personal guarantors of a corporate debtor, arguing that the debt was already extinguished due to repayments.
The Corporate Debtor, M/s Abir Infrastructure Private Limited, was placed in CIRP on 30.01.2019.
State Bank of India issued a Demand Notice on 28.10.2020 under Rule 7(1) of the Insolvency and Bankruptcy (PG to CD) Rules, 2019 to the appellant stating that Rs. 23,37,11,482.86 was due from the Appellant as Personal Guarantor as on 30.09.2020.
The Adjudicating Authority admitted the Section 95 application on 22.03.2024.
The Appellants claim to have remitted Rs.123.80 crores between 07.09.2018 and 28.10.2019, besides maintaining a 100% cash margin of Rs.20 crores.
The Bank relies on a Guarantee Agreement dated 21.04.2011, wherein Clause 19 stipulates that any certified statement of account issued by the Bank shall be binding and conclusive against guarantors.
…Sign in to view the parties.
Corporate Debtor, M/s…
State Bank of India…
These appeals challenge the initiation of insolvency proceedings against personal guarantors of a corporate debtor, arguing that the debt was already extinguished due to repayments.
The Corporate Debtor, M/s Abir Infrastructure Private Limited, was placed in CIRP on 30.01.2019.
State Bank of India issued a Demand Notice on 28.10.2020 under Rule 7(1) of the Insolvency and Bankruptcy (PG to CD) Rules, 2019 to the appellant stating that Rs. 23,37,11,482.86 was due from the Appellant as Personal Guarantor as on 30.09.2020.
The Adjudicating Authority admitted the Section 95 application on 22.03.2024.
The Appellants claim to have remitted Rs.123.80 crores between 07.09.2018 and 28.10.2019, besides maintaining a 100% cash margin of Rs.20 crores.
The Bank relies on a Guarantee Agreement dated 21.04.2011, wherein Clause 19 stipulates that any certified statement of account issued by the Bank shall be binding and conclusive against guarantors.
…Corporate Debtor, M/s…
State Bank of India…