The State Bank of India, as the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against the Personal Guarantor, Mr. Thota Subbarayudu, of M/s. Turbo Machinery Engineering Industries Limited, the Corporate Debtor. The Corporate Debtor had availed credit facilities of Rs. 40,36,00,000/- from the Financial Creditor. The Respondent No.1 stood as guarantor for the repayment of the loan, and Guarantee Deeds were executed between the Financial Creditor and Respondent No.1.
The State Bank of India (Financial Creditor) filed an application to initiate the Insolvency Resolution Process against Mr. Thota Subbarayudu (Personal Guarantor/Respondent No.1) of M/s. Turbo Machinery Engineering Industries Limited (Corporate Debtor). The Corporate Debtor availed credit facilities of Rs. 40,36,00,000/- from the Financial Creditor. The default in payment occurred on 30.06.2013. The Financial Creditor received a part payment of the loan amount by auction, leaving Rs. 8,17,18,639.87/- as the principal outstanding amount. A demand notice dated 11.08.2021 was issued to the Respondent No.1, but the amount was not paid. The Financial Creditor also approached the Debts Recovery Tribunal, Hyderabad, by filing OA No.9734 of 2017. The Respondent No.1 contended
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The State Bank of India, as the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against the Personal Guarantor, Mr. Thota Subbarayudu, of M/s. Turbo Machinery Engineering Industries Limited, the Corporate Debtor. The Corporate Debtor had availed credit facilities of Rs. 40,36,00,000/- from the Financial Creditor. The Respondent No.1 stood as guarantor for the repayment of the loan, and Guarantee Deeds were executed between the Financial Creditor and Respondent No.1.
The State Bank of India (Financial Creditor) filed an application to initiate the Insolvency Resolution Process against Mr. Thota Subbarayudu (Personal Guarantor/Respondent No.1) of M/s. Turbo Machinery Engineering Industries Limited (Corporate Debtor). The Corporate Debtor availed credit facilities of Rs. 40,36,00,000/- from the Financial Creditor. The default in payment occurred on 30.06.2013. The Financial Creditor received a part payment of the loan amount by auction, leaving Rs. 8,17,18,639.87/- as the principal outstanding amount. A demand notice dated 11.08.2021 was issued to the Respondent No.1, but the amount was not paid. The Financial Creditor also approached the Debts Recovery Tribunal, Hyderabad, by filing OA No.9734 of 2017. The Respondent No.1 contended
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