NCLT Hyderabad (10.10.2022) in State Bank of India Vs Uppalapati Venkata Rama Rao & VMC Systems Ltd [IA (IBC) 1012/2022 in CP (IB) No. 397/95/HDB/2020] Repayment plan submitted by the Personal Guarantor is rejected by the Creditor.
Excerpts of the Order;
Ld. Counsel Shri. B Ravi for the applicant/RP and Ld. Counsel Shri. Nitish Bandary for the Personal Guarantor present. This is an application filed by the Resolution Professional to take on record the report of the RP wherein it is stated that the repayment plan submitted by the Personal Guarantor was rejected by the Creditor and also prayed to direct the Creditors to pay the RP fees.
It is noted that the Personal Guarantor submitted the repayment plan to the Creditor and the same was rejected with a voting share of 74.32%. As per Section 111 of the Code, the repayment plan submitted by the Personal Guarantor shall be approved by majority of three-fourth in value of the Creditor. Hence, it is clear that the said repayment plan was rejected by the Creditors.
In view of the report the Insolvency Resolution process ordered against the Personal Guarantor is concluded. The creditors are at liberty to move an Application u/s 121 of the IB Code. The creditors are directed to pay the fee and expenses incurred by the RP as per the provisions of law. Accordingly, IA is disposed of and CP is closed.
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