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

> NCLT judgment dated 2022-06-02. Citation: TCN-2022-NCLT-04721. 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-04721
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/mr-badveli-sridhar-reddy-vs-bank-of-india-ors-b71cb72e

## 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, seeking initiation of the Insolvency Resolution Process. The petitioner is the personal guarantor for M/s Southern Online Biotechnologies Limited.

## Facts

Badveli Sreedhara Reddy filed a petition under Section 94 of the IBC, 2016, as a personal guarantor.

The petitioner is the personal guarantor for M/s Southern Online Biotechnologies Limited.

The Corporate Debtor (Southern Online Biotechnologies Limited) underwent CIRP under CP (IB) No. 343/7/HDB/2018 and was ordered to be liquidated after the resolution plan was rejected.

The Corporate Debtor was disposed of as a 'going concern' on 22.10.2019 during the liquidation process.

The petitioner has given a personal guarantee to the Respondents vide Agreement of Pledge of shares dated 19.11.2015.

The total debt due, including interest and penalties, is Rs. 528.00 crores to the Respondents.

The default occurred on 31.12.2013 and 01.09.2018.

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority shall, within fourteen days from the date of submission of the

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**Reasoning:** The Tribunal considered the report of the RP, who recommended accepting the application.

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

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**Application:** The Tribunal found that the petitioner had defaulted and that the RP's report

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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…
- **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 — Interim-Moratorium…**: 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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