# In the matter Bank of Baroda Vs. Venkata Sujatha Penmetsa, CP (IB) No. 18/95/AMR/2022

> NCLT judgment dated 2022-04-26. Citation: TCN-2022-NCLT-04907. Bank of Baroda filed a petition against Venkata Sujatha Penmetsa (Personal Guarantor) and Veda…

- **Court:** NCLT
- **Order date:** 26 Apr 2022
- **Citation:** TCN-2022-NCLT-04907
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/in-the-matter-bank-of-baroda-vs-venkata-sujatha-penmetsa-cp-2575160f

## Summary

### Background

Bank of Baroda filed a petition against Venkata Sujatha Penmetsa (Personal Guarantor) and Veda Biofuel Limited (Corporate Debtor) under Section 95 of IBC, seeking to initiate Corporate Insolvency Resolution Process (CIRP).

## Facts

Bank of Baroda sanctioned a Rupee Term Loan of Rs.24 Crores to Veda Biofuel Limited on 02.01.2014 for establishing a 2.3 MW Co-Generation Power Plant.

Respondent No.1 (Venkata Sujatha Penmetsa) is the Personal Guarantor, and Respondent No.2 (Veda Biofuel Limited) is the Corporate Debtor.

Veda Biofuel Limited availed credit facilities but failed to adhere to the repayment terms, resulting in the account becoming a Non-Performing Asset (NPA) on 29.10.2018.

A Company Petition was filed against the Corporate Debtor and admitted to CIRP on 12.02.2019.

The Resolution Professional filed an application for Liquidation of the Corporate Debtor, which was allowed.

The outstanding due amount as on 25.05.2020 is Rs.43,10,94,480.18/-.

…

## Issues and analysis

### Issue 1: Whether the Respondents have a right of audience at the stage before the appointment of the Interim …

**Ratio:** No right of audience is provided under Section 95 or 97 of IBC before the appointment of

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**Reasoning:** The Adjudicating Authority, under Section 97, directs the Board to nominate a resolution

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**Interpretation:** The court interpreted the provisions of Sections 95, 97, and 100 of IBC to

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**Application:** The court applied the provisions of IBC and the judgments of the Bombay High

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** Bank of B…
- **Respondents:** Veda Biofuel…; Venkata Sujatha…
- **Other parties:** Yannamsetti…; Dr.K.V.Sr…
- **Advocates:** Mr.V.V.S.…

## Timeline

- **2014-01-02 — Sanction of Rupee Term…**: Bank of Baroda sanctioned a Rupee Term Loan…
- **2018-10-29 — Account Decla…**: The account of Veda Biofuel Limited…

## 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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