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TMI Blog2022 (8) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant by the same order. Aggrieved by the order dated 03.02.2022 this Appeal has been filed. 2. Brief facts of the case necessary to be noticed for deciding this Appeal are: (a) The Respondent - Financial Creditor sanctioned loan cum hypothecation amounting to Rs.1,59,00,000/- and Rs.71,00,000/-, respectively to CMI Ltd. (Corporate Debtor/ Principal Borrower). The Appellant stood as Personal Guarantor to the said transaction. Two Master Finance Agreements dated 13.02.2020 were executed by and between the Corporate Debtor, the Appellant - Personal Guarantor and the Respondent - Financial Creditor. (b) The Corporate Debtor/Principal Borrower defaulted in paying the EMI in 2020. (c) A Company Petition (IB) No. 707/ND/2021 was filed under Section 95 of the I&B Code by the Respondent in November, 2021, where amount in default has been mentioned as Rs.2,44,57,796/-. The application mentions the date on which account was declared NPA as 11.09.2020. The application was relisted before the Adjudicating Authority on 03.02.2022 on which date impugned order was passed by the Adjudicating Authority issuing notice to the Appellant and appointing Resolution Professional. 3. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by a Personal Guarantor and an application under Section 95 shall be barred for a default which has arisen on or after 25.03.2020 till 24.03.2021? 7. Section 10A is to the following effect:- "10A. Notwithstanding anything contained in sections 7, 9 and 10, no application for initiation of corporate insolvency resolution process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified in this behalf: Provided that no application shall ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occurring during the said period. Explanation.-For the removal of doubts, it is hereby clarified that the provisions of this section shall not apply to any default committed under the said sections before 25th March, 2020." 8. Section 10A begins with non-obstante clause. The section contains a prohibition against initiation of CIRP of a Corporate Debtor for any default arising on or after 25.03.2020. Object of insertion of Section 10A is well known. The whole country was gripped w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convenience cannot alter the meaning of the language employed by the Legislature if such meaning is clear on the face of the statute or the rules." 14. Hon'ble Supreme Court in "Lalu Prasad Yadav & Anr vs. State of Bihar & Anr., (2010) 5 SCC 1" reiterated the same basic principle of statutory interpretation in Paras 23 and 24:- "23. In Sussex Peerage6, the House of Lords, through Lord Chief Justice Tindal, stated the rule for the construction of Acts of Parliament that they should be construed according to the intent of the Parliament which passed the Act. If the words of the statute are of themselves precise and unambiguous, then no more can be necessary than to expound those words in their natural and ordinary sense. The words themselves do, in such case, best declare the intention of the Legislature. 24. A Constitution Bench of this Court in Union of India & Anr. v. Hansoli Devi and Others7, approved the rule exposited by Lord Chief Justice Tindal in The Sussex Peerage's case6 and stated the legal position thus: (Hansoli Devi case7, SCC p.281, para 9) "9. ... It is a cardinal principle of construction of a statute that when the language of the statute is plain and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... words, so as to make the statute effective......" 15. Hon'ble Supreme Court in "Nemai Chandra Kumar & Others vs. Mani Square Ltd. & Others, (2015)14 SCC 203" in paras 32 and 33 laid down following:- "32. Ordinarily, the Court resorts to the plain meaning rule (also Known as literal rule) for statutory interpretation. The said rule emphasis that the starting point in the statutory interpretation is statute itself and if the language of statute is Clear and unambiguous there is no need to look outside the statue. 33. The intention of the legislature is primarily to be gathered from the language used in the statute, "thus paying attention to what has been said as also to what has not been said" as observed by his Court in Dental Council of India v. Hari Prakash7. Relevant part of which is quoted hereunder: "7. The intention of the legislature is primarily to be gathered from the language used in the statute, thus paying attention to what has been said as also to what has not been said. When the words used are not ambiguous, literal meaning has to be applied, which is the golden rule of interpretation."" 16. On the basic principle of statutory interpretation, the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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