Supreme Court (21.03.2022) in Mahendra Kumar Jajodia vs. State Bank of India (Civil Appeal No(s). 1871-1872/2022) stayed the operation of the orders/judgement dated 27.01.2022 of NCLAT State Bank of India Vs. Mahendra Kumar Jajodia [Company Appeal (AT) Insolvency No. 60 of 2022]
Excerpts of the order;
Learned counsel for the appellant has drawn our attention to the following portion of paragraph 108 of the Judgement rendered by this Court on 21.05.2021 in Transferred case No. 245 of 2020 etc. entitled Lalit Kumar Jain vs. Union of India & Ors. reported in 2021(9) SCC 321:
“Section 60(2) prescribes that in the event of an ongoing resolution process or liquidation process against a corporate debtor, an application for resolution process or bankruptcy of the personal guarantor to the corporate debtor shall be filed with NCLT concerned seized of the resolution process or liquidation. Therefore, the Adjudicating Authority for personal guarantors will be NCLT, if a parallel resolution process or liquidation process is pending in respect of a corporate debtor for whom the guarantee is given. The same logic prevails, under Section 60(3), when any insolvency or bankruptcy proceeding pending against the personal guarantor in a court or tribunal and a resolution process or liquidation is initiated against the corporate debtor. Thus if A, an individual is the subject of a resolution process before the DRT and he has furnished a personal guarantee for a debt owed by a company B, in the event a resolution process is initiated against B in an NCLT, the provision results in transferring the proceedings going on against A in the DRT to NCLT.”
Issue notice. Until further orders, there shall be stay of the operation of the impugned Order passed by the National Company Law Appellate Tribunal, Principal Bench, New Delhi.
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1. Link to NCLAT judgement in State Bank of India Vs. Mahendra Kumar Jajodia
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Supreme Court (06.05.2022) in Mahendra Kumar Jajodia Etc. Vs. State Bank of India [Civil Appeal No(s). 1871-1872/2022] upheld the orders of NCLAT dated 27.01.2022, which reads as under;
ReplyDelete# 11. The Adjudicating Authority erred in holding that since no CIRP or Liquidation Proceeding of the Corporate Debtor are pending the application under Section 95(1) filed by the Appellant is not maintainable. The Application having been filed under Section 95(1) and the Adjudicating Authority for application under Section 95(1) as referred in Section 60(1) being the NCLT, the Application filed by the Appellant was fully maintainable and could not have been rejected only on the ground that no CIRP or Liquidation Proceeding of the Corporate Debtor are pending before the NCLT.
Excerpts of the order;
We have heard learned Solicitor General and learned senior counsel for the parties and perused the record. We do not see any cogent reason to entertain the Appeals. The judgment impugned does not warrant any interference.
The Appeals are dismissed.