TMI Blog2022 (2) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... ents No.3 to 11, and it would be the said purchaser who would be entitled prima facie to exercise all rights as a creditor in respect of the remaining debt, including the right to enforce any security, guarantee or mortgage granted in respect of such debt. Primafacie it appears that the respondents are not entitled to continue the proceedings before the NCLT-New Delhi and the DRT-II, New Delhi to enforce the personal guarantees given by the petitioners to the loans given by the respondents to M/s ACCIL and only M/s Hasaud Steels Limited appears to be entitled to do so. For filing of replies by the respondents, list along with CWP-24980-2021, CWP-26726-2021, CWP-26715-2021 and CWP-26668- 2021, on 21.03.2022. - M.S. RAMACHANDRA RAO, JUDGE AND H.S. MADAAN, JUDGE Mr.Anand Chhibbar, Sr. Advocate, with Mr.Nitin Kaushal, Mr. Tanuj Sood, and Mr.Ajay Kumar, Advocates, for the petitioner. Mr.Manish Jain, Advocate, with Mr.Mayur Kanwar, Advocate, Mr.Ankur Mittal, Advocate, Ms.Meera Murali, Advocate, Mr.Parshant Sethi, Advocate, Mr.Shailender Kahsyap, Advocate, Mr.Aishwarya Pandey, Advocate, Mr.Itisha Gulati, Advocate, for respondent ORDER These matters had been listed on 25.1.2022 and notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 in favour of the principal borrower clearly stating that no debt or payment is due or outstanding, as of date thereof, from the principal borrower to it. IP (IB) No.478 of 2021 was filed against the petitioner in CWP- 1156-2021 before the NCLT, New Delhi under Sec.95 of the IBC and rule 7 (2) of the Insolvency and Bankruptcy ( Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to corporate debtors) Rules, 2019 seeking to initiate Corporate Insolvency Resolution Process against him in his capacity as a personal guarantor. Assets of the said petitioner located in the State of Haryana were mentioned in the said IP (IB) No.478 of 2021. According to the petitioners, by virtue of the final resolution plan, the entire debt of M/s ACCIL, the principal borrower along with interest stood assigned to M/s Hasaud Steels Limited and there is no debt in the books of respondents No.3 to 11, as a result of which, no remedy or recourse remains left with respondents No.3 to 11 to exercise with respect to the debt extended to the principal borrower. Petitioners contend that as per the approved Resolution Plan of the principal borrower, and the above order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y corporate debtor completes, the accounts of such corporate debtor begin with a clean slate; and once the Resolution Plan concerning the debts of the principal borrower was approved by the NCLT on 19.10.2020, the entire debt of the principal borrower stood assigned to M/s Hasaud Steels Limited, and its account, which was earlier declared as NPA by the lenders, stands free of all exposures towards the lenders. Reliance is placed on the orders passed by one of us (M.S.R.J) in CWP-24980-2021 on 10.12.2021, and similar orders passed on 22.12.2021 and 23.12.2021 in CWP-26726-2021, CWP-26715-2021 and CWP-26668- 2021. Petitioners therefore, seek stay of recovery action vide (i) IP(IB) No.478 of 2021 before the NCLT, New Delhi, (ii) OA No.743 of 2018 filed by respondents No.4 to 10, (iii) OA No.367 of 2017 filed by respondent No.3 and (iv) OA No.1095 of 2019 filed by respondent No.11 before the DRT, New Delhi. It is the contention of the counsel for the petitioners that this Court has territorial jurisdiction to entertain these writ petitions since the petitioners are residents of Faridabad in the State of Haryana, and the properties of the petitioners are also located in the State of Har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Subject to (b) below, nothing in the Resolution Plan shall operate or have the effect of assigning, revoking, cancelling or extinguishing the Excluded Rights and the Direct Financial Creditors and/or Related Entity Creditors (as may be applicable) are free to pursue such remedies and exercise such rights as they may have under applicable law in respect of the Excluded Rights; and (b) Only the Purchaser, and no other creditor, shall be entitled to pursue applicable legal remedies (such as seeking sale or attachment) in relation to the land owned by Mr.Pradeep Kumar Aggarwal at Khopoli, as more particularly described in the survey report dated February 1, 2019 read with the correction report dated March 4, 2019 issued by perfect Surveyors, provided by the Resolution Professional. Even Mr.Ankur Mittal, Advocate appearing for respondent Nos.4, 5, 8 11 laid much stress on the same and contended that the above referred clause and also Clause 1.12 of the amended Resolution Plan dt.6.5.2019 which excluded personal guarantees and even the assignment deed dt.27.10.2020 executed by respondent No.4, M/s Hasaud Steel Limited and M/s ACCIL (at Clause 2.1) did not assign the excluded rights i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 16 of the RBI circular RBI/2018-19/203 dt. 7.6.2019 , prima facie, there would be extinguishment of debt in the books of respondents No.3 to 11. This is because if such debt is not extinguished in the books of respondents No.3 to 11, the Resolution Plan itself cannot be deemed to be implemented. Moreover, clause 1.2 of the Resolution Plan states in Clause (d) (ii) as under: (d)(ii) the Remaining debt (and all rights of the Financial Creditors in respect of such debt), shall stand assigned/noated to the Purchaser and the Loan Assisgnment Paymentn shall be paid in the manner set out in Step 4 of Schedule 2 (Resolution Plan Steps), on a pro rota basis to the amount payable to the Director Financial Creditors. Upon such assignment, the Purchaser shall be entitled to exercise all rights as a creditor in respect of the Remaining Debt, including the right to enforce any security, guarantee or mortgage granted in respect of such debt. Thus once the debt stands assigned to M/s Hasaud Steel Limited, the loan assignment payment must have been paid on a pro rata basis to each of the respondents No.3 to 11, and it would be the said purchaser who would be entitled prima facie to exercise all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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