# In the matter of Krishan Kumar Basia, CP (IB) No. 788/ND/2021

> NCLT judgment dated 2022-08-02. Citation: TCN-2022-NCLT-01497. The application was filed by Mr. Krishan Kumar Basia through Mr. Dharm Vir Gupta (Resolution…

- **Court:** NCLT
- **Order date:** 2 Aug 2022
- **Citation:** TCN-2022-NCLT-01497
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/krishan-kumar-basia-cp-ib-no-788nd2021-db19a5ef

## Summary

### Background

The application was filed by Mr. Krishan Kumar Basia through Mr. Dharm Vir Gupta (Resolution Professional) under Section 94(1) of the Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor Rules, 2019) for initiating the Insolvency Resolution Process against Mr. Krishan Kumar Basia. The corporate insolvency resolution process was initiated against M/s. Gee Ispat Private Limited vide order dated 24.08.2017. Liquidation order of the corporate debtor was passed on 05.10.2018. The personal guarantor filed the application due to personal incapacity to repay the debts of the Corporate Debtor.

## Facts

Mr. Krishan Kumar Basia executed a personal guarantee to secure the repayment of financial assistance availed by M/s Gee Ispat Pvt. Ltd. from State Bank of India. M/s Shree Ram Lime Products Pvt. Ltd. filed an application under Section 9 of the Code against the Corporate Debtor. The Corporate Insolvency Resolution Process was initiated against M/s. Gee Ispat Private Limited vide order dated 24.08.2017, and a liquidation order was passed on 05.10.2018. Due to the personal incapacity of the personal guarantor to repay the debts of the Corporate Debtor, the personal guarantor filed an application for initiating the Insolvency Resolution Process. Another Company Petition (IB) No.111 (ND)/2022 was filed by State Bank of India against Krishan Kumar Basia on 02.10.2021,

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## Issues and analysis

### Issue 1: Whether the instant application ((IB)-788(ND)2021) is maintainable given the existing interim …

**Ratio:** An application is not maintainable if an interim moratorium is already in effect under

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**Reasoning:** The court observed that an interim moratorium stipulated under Section 96 (1) (a) of the

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**Interpretation:** Section 96 of the Code provides for an interim moratorium upon the filing of an

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**Application:** Since Company Petition (IB) No.111(ND)/2022 was filed on 02.10.2021, and the

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## Parties

- **Judges:** DHARMINDER…; L. N. G…
- **Appellants:** Krishan Kumar…
- **Respondents:** Gee Ispat Private…

## Timeline

- **2017-08-24 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2018-10-05 — Liquidation…**: Liquidation order passed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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