Interim Order 8

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: 21.08.2024 CS No. 268/23
Sunil Singhal vs. Devender
Present: Sh. Murari Lal Sharma, Ld. Counsel for the plaintiff.
Ld. Counsel for the defendant.
The matter is at the stage of the arguments on the application filed by the
defendant seeking sine die adjournment of the present matter on the ground that an
application under Section 94 of the Insolvency and Bankruptcy Code is pending before the
Hon’ble NCLT.
Ld. Counsel for the defendant has placed on record various orders passed by
the NCLT in IB No. 186(ND) 2024 togetherwith the filing number of the said application
as per which the application stands filed on 04.04.2024.
Ld. Counsel for the plaintiff submits that he needs sometime to verify the fact
of the present application under Section 94 having been filed before the NCLT.
The application as filed by the applicant before the NCLT has been filed on
the ground that since personal guarantee has been given by the applicant to M/s Agroha
colour Tec Pvt Ltd for the repayment of outstanding dues of Agroha Colour Tec Pvt Ltd to
M/s Canara Bank and since the same were not paid by M/s Agroha Colour Tec Pvt Ltd, the
personal guarantee has been invoked by M/s Canara Bank.
In the said application, it has been prayed by the applicant/defendant in the
present matter that insolvency resolution process be initiated in respect of the defendant
i.e. Sh. Devender Kumar Aggarwal.
In the said application, the assets of Devender Kumar Aggarwal have been
disclosed in Para-11 of the said application.
Perusal of the said application shows that at page 44 thereof that the name of
the petitioner i.e. M/s Sunil Singhal has been clearly shown in the list of creditors.
Perusal of Section 96 of the Insolvency and Bankruptcy Code shows that
upon filing of an application under Section 94 and 95 of the said code, an interim
moratorium would commence on the date of the application in relation to all the debts and
shall cease to have effect on the date of admission of such application and vide Clause b
thereof it has been specified that during the interim moratorium period -
i. Any legal action or proceeding pending in respect of any debt shall be deemed to have
been stayed.
ii. The creditors or the debtors shall not initiate any legal action or proceedings in respect
of any debt.
Ld. Counsel for the plaintiff submits that he would be filing relevant case law
to show that the matter does not fall within the provisions of Section 96 of the Insolvency
and Bankruptcy Code since the application seeking the initiation of insolvency resolution
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process is only with respect to the invocation of the personal guarantee given by the
defendant.
It is further submitted by counsel for the plaintiff that the application as
preferred before NCLT is with respect to the initiation of resolution process not in respect
of the applicant/Devender Kumar Aggarwal but is qua the company i.e. M/s Agroha
Colour Tec Pvt Ltd.
Ld. Counsel for the plaintiff has been asked as to whether a natural person
unlike a company has dual capacities i.e. one as a personal guarantor and the other as a
natural person and as to whether a person in respect of which an application seeking
initiation of the insolvency resolution process has been preferred whether can be declared
to be an insolvent in one capacity and in the other capacity, he remains solvent.
At request, list for arguments on the aforesaid aspect on 21.10.2024.
Sachin Sood
DJ-01, Central, THC
21.08.2024
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