# In the matter of Bank of Maharashtra Vs. Marella Srinivas Reddy, CP (IB)/45/95/HDB/2023

> NCLT judgment dated 2023-05-01. Citation: TCN-2023-NCLT-03552. The case involves an application filed by a Financial Creditor. The Tribunal ordered notice to…

- **Court:** NCLT
- **Order date:** 1 May 2023
- **Citation:** TCN-2023-NCLT-03552
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-marella-srinivas-reddy-cp-d5250929

## Summary

### Background

The case involves an application filed by a Financial Creditor. The Tribunal ordered notice to the Personal Guarantor, which was duly served. However, the Personal Guarantor did not appear or contest the Petition and was set ex-parte. The Petitioner satisfied the court for admission of the Application of IRP.

## Facts

Bank of Maharastra filed an application against Mr. Marella Srinivasa Reddy (Maven Life Sciences Pvt Ltd) as a Personal Guarantor. The Tribunal ordered notice to the Personal Guarantor, which was duly served, but the Personal Guarantor did not appear or contest the Petition. The Tribunal was satisfied that the Petitioner had made out a case for admission of the Application of IRP. The company petition was admitted, declaring a moratorium with effect from the date of the order. Shri Golla Rama Kanth Rao was appointed as the IRP. The IRP is required to file a report under Section 99 of the Code within 10 days from the date of his appointment. The interim moratorium commences from the date of filing the application under Section 96(1)(a) of IBC, 2016. The matter was

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is admissible for initiating the insolvency …

**Ratio:** The Tribunal has the power to admit an application for IRP if the petitioner satisfies

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**Reasoning:** The Tribunal reasoned that the Personal Guarantor was duly served with notice but chose

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**Interpretation:** The interpretation is that if a personal guarantor is properly notified and

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**Application:** In this case, the Personal Guarantor was served notice but did not appear. The

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Bank of Mah…
- **Respondents:** Maven Life…; Marella Srinivasa…

## Timeline

- **2023-01-05 — Hearing…**: Hearing held on…
- **N/A — Notice to Personal…**: Tribunal ordered notice to the Personal…

## 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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