# In the matter of Central Bank vs. Vikas Aggarwal

> NCLT judgment dated 2024-08-06. Citation: TCN-2024-NCLT-00867. The case pertains to a petition filed by Canara Bank through its Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 6 Aug 2024
- **Citation:** TCN-2024-NCLT-00867
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-vs-vikas-aggarwal-acdaf3c5

## Summary

### Background

The case pertains to a petition filed by Canara Bank through its Resolution Professional (RP) under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate insolvency resolution process against Mr. Vikas Aggarwal, the personal guarantor to M/s Sunstar Overseas Limited, the Corporate Debtor (CD). The CD had availed various credit facilities from a consortium of banks, including Canara Bank. The CD defaulted on its payments, leading to the invocation of the personal guarantee. The RP filed a report recommending the admission of the petition. The Personal Guarantor (PG) raised objections, including the RP preparing the report in haste, Canara Bank acting unilaterally without the consent of the Joint Lenders' Forum (JLF), and the CD defaulting due to

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## Facts

M/s Sunstar Overseas Limited (Corporate Debtor) availed various credit facilities from a consortium of banks, including Canara Bank. Mr. Vikas Aggarwal stood as the Personal Guarantor to the Corporate Debtor. The Corporate Debtor defaulted on its payments, leading to the invocation of the personal guarantee by Canara Bank. Canara Bank issued a demand notice to the Personal Guarantor seeking payment of the default amount. The Personal Guarantor did not make the payment. Canara Bank, through its RP, filed a petition under Section 95(1) of the IBC against the Personal Guarantor. The RP submitted a report recommending the admission of the petition. The Personal Guarantor raised objections, including the RP preparing the report in haste, Canara Bank acting unilaterally

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## Issues and analysis

### Issue 1: Whether the report of the Resolution Professional (RP) was prepared in undue haste without giving …

**Ratio:** The RP is required to submit his report within a period of 10 days of his appointment as

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**Reasoning:** The Adjudicating Authority found that the RP had written to the PG intimating him about

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**Interpretation:** The RP's actions were in compliance with the provisions of Section 99 of the

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**Application:** The RP's actions were deemed appropriate,

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## Parties

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