# Bank of Baroda & Anr. vs. MBL Infrastructures Limited & Ors. [Civil Appeal No. 8411 of 2019]

> SC judgment dated 2022-01-18. Citation: TCN-2022-SC-00076. The case involves a challenge to the eligibility of Respondent No. 3 to submit a resolution plan…

- **Court:** SC
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-SC-00076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/bank-of-baroda-anr-vs-mbl-infrastructures-limited-ors-e5e29424

## Summary

### Background

The case involves a challenge to the eligibility of Respondent No. 3 to submit a resolution plan under Section 29A(h) of the Insolvency and Bankruptcy Code (IBC). MBL Infrastructures Limited (Respondent No. 1) obtained loans from a consortium of banks. Upon failure to repay, some banks invoked personal guarantees extended by Mr. Anjanee Kumar Lakhotiya (Respondent No. 3). RBL Bank filed an application under Section 7 of the IBC before the National Company Law Tribunal (NCLT), Kolkata, initiating the corporate insolvency resolution process (CIRP) against Respondent No. 1. The NCLT admitted the application and appointed an Interim Resolution Professional. Two resolution plans were received, one authored by Respondent No. 3. Section 29A was introduced, leading to

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## Facts

MBL Infrastructures Limited (Respondent No. 1) was set up by Mr. Anjanee Kumar Lakhotiya (Respondent No. 3) in the early 1990s. Respondent No. 1 obtained loans from a consortium of banks, including State Bank of Mysore (now State Bank of India). Upon Respondent No. 1's failure to repay, some respondents invoked personal guarantees extended by Respondent No. 3. RBL Bank issued a notice under Section 13(2) of the SARFAESI Act after invoking Respondent No. 3's personal guarantee. Allahabad Bank and State Bank of Bikaner and Jaipur took similar action. RBL Bank filed an application under Section 7 of the IBC before the NCLT, Kolkata, initiating CIRP against Respondent No. 1. The NCLT admitted the application. Two resolution plans were received, one authored by Respondent

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## Issues and analysis

### Issue 1: Whether Respondent No. 3 was eligible to submit a resolution plan under Section 29A(h) of the …

**Ratio:** Section 29A(h) of the IBC disqualifies a person from submitting a resolution plan if they

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**Reasoning:** The Court reasoned that the legislative intent behind Section 29A is to prevent

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**Interpretation:** The Court interpreted Section 29A(h) to mean that a person is ineligible to

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**Application:** In this case, personal guarantees executed by Respondent No. 3 were invoked

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## Parties

- **Judges:** SANJAY KISH…; M.M. SUN…
- **Appellants:** Bank of B…
- **Respondents:** MBL Infrastructure…
- **Other parties:** 7th Edition…; CIRP…; +9 more

## Timeline

- **1990-01-01 — Incorporation of MBL…**: MBL Infrastructures Limited (Respondent No. 1) was set up by Mr. Anjanee Kumar Lakhotiya…
- **2013-02-01 — SARFAESI Notice by RBL…**: RBL Bank issued a notice under Section 13(2) of the SARFAESI Act after invoking…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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