# In the matter of Mr. Badveli Sridhar Reddy Vs. Bank of India & Ors

> NCLT judgment dated 2022-06-02. Citation: TCN-2022-NCLT-04718. The case pertains to a petition filed by Badveli Sreedhara Reddy (Personal Guarantor) under…

- **Court:** NCLT
- **Order date:** 2 Jun 2022
- **Citation:** TCN-2022-NCLT-04718
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/mr-badveli-sridhar-reddy-vs-bank-of-india-ors-3f8b8c2b

## Summary

### Background

The case pertains to a petition filed by Badveli Sreedhara Reddy (Personal Guarantor) under Section 94 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking initiation of the Insolvency Resolution Process.

## Facts

Badveli Sreedhara Reddy filed a petition under Section 94 of IBC as a personal guarantor.

The petition relates to a personal guarantee given for M/s Southern Online Biotechnologies Limited.

The Corporate Debtor, Southern Online Biotechnologies Limited, underwent CIRP and was subsequently liquidated.

The Corporate Debtor was sold as a going concern during liquidation.

Financial creditors invoked the personal guarantee extended by Badveli Sreedhara Reddy.

The Resolution Professional recommended accepting the application for initiating the Insolvency Resolution Process.

The Tribunal granted interim-moratorium and appointed Mr. Maligi Madhusudhana Reddy as Interim Resolution Professional on 29.09.2021.

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## Issues and analysis

### Issue 1: Whether Insolvency Resolution Process can be …

**Ratio:** Section 94 of the IBC allows a debtor who commits a default to apply for initiating the

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**Reasoning:** The Petitioner admitted to default in repayments of debt for which he gave a personal

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**Interpretation:** The Tribunal interpreted Section 94 of the IBC to allow for the initiation of

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**Application:** The Tribunal applied Section 94 of the IBC to the case, finding that the

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** Badveli Sridhar…; Badveli Sreedhara…
- **Respondents:** Southern Online…; Bank of…; +4 more
- **Other parties:** Maligi Madhusudhan…; Maligi Madhusudhan…
- **Advocates:** K. Purnachandra…

## Timeline

- **2022-06-02 — Order Da…**: Orders pronounced vide separate orders in Company Petition IB/75/2021. The Petiton is…
- **2021-09-29 — Tribunal…**: Tribunal vide order dated 29.09.2021 has granted interim-moratorium and has appointed Mr.…

## Legal provisions

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

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