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Informist, Friday, Apr. 11, 2025

 

NEW DELHI – The National Company Law Appellate Tribunal has upheld an order by the Delhi bench of the National Company Law Tribunal to admit IFCI Ltd.'s petition to start personal guarantor insolvency proceedings against Supertech Ltd.'s Chairman and Promoter R.K. Arora. Supertech had in 2015 taken a corporate loan of INR 1 billion from IFCI in which Arora was the personal guarantor. 

 

"We, after hearing the counsel for the appellant, are of the view in so far as the admission of the application under Section 95 (under Insolvency and Bankruptcy Code, 2016), that cannot be faulted on the ground of pendency of proceedings under Section 7 against (corporate debtor) CD (Supertech)," said the appellate tribunal. It is, however, open for Arora to bring before the resolution professional settlement with IFCI if any, or any proceedings or any settlement, the appellate tribunal said. 

 

Arora had argued that in the insolvency proceedings against Supertech, the top court had asked the promoters to submit a settlement plan. Arora said that the process was already pending before the apex court and the company’s promoters and other parties are submitting a plan for construction and settlement.

 

"... we are of the view that the personal insolvency proceedings are not defended on proceedings under Section 7, which are proceedings against the corporate debtor (Supertech), the liability of the personal guarantor and the CD (corporate debtor) to the lenders are co-extensive and it is open for the lenders to proceed against both simultaneously or separately," the appellate tribunal said.

 

Friday, shares of IFCI ended up 1.8% at INR 40.55 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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