A Report Under Section 99 Of IBC Cannot Be Filed By Resolution Professional Without The Adjudicating Authority's Directions: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench, comprising of Shri H. V. Subba Rao (Judicial Member) Shri Chandra Bhan Singh (Technical Member), while adjudicating a petition filed in Bank of Baroda Limited v Mr. Pawan V Kikavat, has directed the Resolution Professional to file a fresh a report under Section 99 of the Insolvency and Bankruptcy Code, 2016 ("IBC") for recommending...
The National Company Law Tribunal, Mumbai Bench, comprising of Shri H. V. Subba Rao (Judicial Member) Shri Chandra Bhan Singh (Technical Member), while adjudicating a petition filed in Bank of Baroda Limited v Mr. Pawan V Kikavat, has directed the Resolution Professional to file a fresh a report under Section 99 of the Insolvency and Bankruptcy Code, 2016 ("IBC") for recommending approval or rejection of insolvency petition against the Personal Guarantor, which was previously filed by the Resolution Professional on its own accord, without there being any direction from the Adjudicating Authority. The Personal Guarantor had raised objections before the NCLT Bench that a report u/s 99 of the IBC cannot be filed until the Adjudicating Authority directs so.
Brief Facts
Bank of Baroda ("Petitioner") had filed a petition under Section 95 of the IBC seeking initiation of Insolvency Resolution Process against the Mr. Pawan V Kikavat ("Personal Guarantor/Respondent"), who is the Personal Guarantor of the M/s. Mahavir Roads and infrastructure Pvt. Ltd. ("Corporate Debtor"). Notice was duly served on the Personal Guarantor.
The Petitioner had placed on record the Demand Notice dated 06.11.2020 issued to the Personal Guarantor invoking the Guarantee, proof of delivery of the Demand Notice and Deed of Guarantee dated 26.04.2012 executed by the Personal Guarantor. The Petitioner had proposed the name of Mr. Kairav Anil Trivedi for Resolution Professional.
The Personal Guarantor opposed the maintainability of the Petition on the ground that the Resolution Professional has already filed his report even without passing any order by the Adjudicating Authority appointing him and directing to file his report.
The NCLT Bench directed the Resolution Professional to examine the petition and file his fresh report within 10 days from the date of the order. The next date of hearing has been fixed to 29.07.2022 for submission of the report by the Resolution Professional.
Case Title: Bank of Baroda Limited v Mr. Pawan V Kikavat, C.P.(IB)-140(MB)/2022.
Counsel for Petitioner: Mr. Kairav Trivedi, PCA
Counsel for Personal Guarantor: Mr. Nausher Kohli