# In the matter of Central Bank vs. Kapil Aggarwal

> NCLT judgment dated 2024-08-06. Citation: TCN-2024-NCLT-00868. The case involves a petition filed by Canara Bank through its Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 6 Aug 2024
- **Citation:** TCN-2024-NCLT-00868
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-vs-kapil-aggarwal-0b0922e7

## Summary

### Background

The case involves a petition filed by Canara Bank through its Resolution Professional (RP) under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mr. Kapil Aggarwal, the personal guarantor to M/s Sunstar Overseas Limited (Corporate Debtor). The application seeks to initiate the insolvency resolution process against the personal guarantor due to a default amount of Rs. 113,90,24,108.65 as of 31.10.2022, after adjusting Rs. 11,49,52,893 recovered from the CIR process of the Corporate Debtor. The Corporate Debtor had availed credit facilities from a consortium of banks, including Canara Bank. The personal guarantee was invoked on 25.04.2018. The RP submitted a report recommending the admission of the petition.

## Facts

M/s Sunstar Overseas Limited (Corporate Debtor) availed various credit facilities from a consortium of banks, including Karur Vysya Bank Ltd., City Union Bank Limited, Karnataka Bank Limited, Union Bank of India, Punjab National Bank, ICICI Bank, and Canara Bank. Mr. Kapil Aggarwal stood as the Personal Guarantor (PG) to the Corporate Debtor. An Interse Agreement was executed between Karur Vysya Bank Ltd. and other consortium banks on 29.01.2010, designating Karur Vysya Bank as the lead member. Deeds of personal guarantee were executed by various guarantors, including the Respondent PG, to secure the financial facilities. On 30.10.2015, a board resolution was passed by the Corporate Debtor for approval of a Draft Master Restructuring Agreement. A Supplementary Master

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## Issues and analysis

### Issue 1: Whether the report by the RP was prepared in undue haste, thereby denying the Personal Guarantor an …

**Ratio:** The Adjudicating Authority held that the RP had informed the PG of his appointment and

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**Reasoning:** The RP wrote a letter to the PG on 19.12.2023, intimating him about his appointment and

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**Interpretation:** The RP is required to submit his report within a specific timeframe. The

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**Application:** The RP informed the PG of his appointment and requested information. The PG did

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Canara Bank…
- **Respondents:** M/s. Sunstar…; Kapil Agg…

## Timeline

- **2010-01-29 — Interse Agr…**: An Interse Agreement was executed between Karur Vysya Bank Ltd. and other consortium…
- **2015-10-30 — Board Reso…**: A board resolution was passed by the CD for approval of a Draft Master Restructuring…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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