The appeals revolve around whether Section 14 of the Insolvency and Bankruptcy Code, 2016, which provides for a moratorium, would apply to a personal guarantor of a corporate debtor. The Respondent No.1 is the Managing Director of the Respondent No.2 Company and also the personal guarantor in respect of credit facilities availed from the Appellant. The Guarantee Agreement between the Appellant and the Respondent No.1 is dated 22.02.2014. The Respondent No.2 Company did not pay its debts in time, and its account was classified as a non-performing asset on 26.07.2015. The Appellant issued a notice dated 04.08.2015 under Section 13(2) of the SARFAESI Act demanding an outstanding amount. A possession notice under Section 13(4) of the SARFAESI Act was issued on 18.11.2016.
…State Bank of India (SBI) extended credit facilities to a corporate debtor, with V. Ramakrishnan acting as a personal guarantor. The corporate debtor defaulted on its payments, leading SBI to classify the account as a non-performing asset on 2015-07-26. SBI issued a notice under Section 13(2) of the SARFAESI Act on 2015-08-04, demanding payment of Rs. 61,13,28,785.48. When no payment was made, SBI issued a possession notice under Section 13(4) of the SARFAESI Act on 2016-11-18. The corporate debtor filed an application under Section 10 of the IBC on 2017-05-20 to initiate corporate insolvency resolution process (CIRP) against itself, which was admitted on 2017-06-19, triggering a moratorium under Section 14 of the IBC. V. Ramakrishnan, the personal guarantor, filed an
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The appeals revolve around whether Section 14 of the Insolvency and Bankruptcy Code, 2016, which provides for a moratorium, would apply to a personal guarantor of a corporate debtor. The Respondent No.1 is the Managing Director of the Respondent No.2 Company and also the personal guarantor in respect of credit facilities availed from the Appellant. The Guarantee Agreement between the Appellant and the Respondent No.1 is dated 22.02.2014. The Respondent No.2 Company did not pay its debts in time, and its account was classified as a non-performing asset on 26.07.2015. The Appellant issued a notice dated 04.08.2015 under Section 13(2) of the SARFAESI Act demanding an outstanding amount. A possession notice under Section 13(4) of the SARFAESI Act was issued on 18.11.2016.
…State Bank of India (SBI) extended credit facilities to a corporate debtor, with V. Ramakrishnan acting as a personal guarantor. The corporate debtor defaulted on its payments, leading SBI to classify the account as a non-performing asset on 2015-07-26. SBI issued a notice under Section 13(2) of the SARFAESI Act on 2015-08-04, demanding payment of Rs. 61,13,28,785.48. When no payment was made, SBI issued a possession notice under Section 13(4) of the SARFAESI Act on 2016-11-18. The corporate debtor filed an application under Section 10 of the IBC on 2017-05-20 to initiate corporate insolvency resolution process (CIRP) against itself, which was admitted on 2017-06-19, triggering a moratorium under Section 14 of the IBC. V. Ramakrishnan, the personal guarantor, filed an
…Guarantee Agreement entered into between…
Account of Respondent…