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TMI Blog2023 (4) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy Resolution Professional ("IRP") as Resolution Professional ("RP"). The Appellant, a personal guarantor of Corporate Debtor, M/s - Uttam Galva Metallics Limited aggrieved by the said order, filed this Appeal. 2. We have heard Shri Gaurav Mitra, learned Counsel for the Appellant and shri Harshit Khare, learned Counsel appearing for State Bank of India ("SBI"). 3. The learned Counsel for the Appellant submits that the Registered Office of the Corporate Debtor M/s Uttam Galva Metallics Limited is situated in State of Haryana, hence, the Application under Section 95(1) filed by the SBI before the National Company Law Tribunal, Mumbai Bench was not maintainable and lacks territorial jurisdiction. It is submitted that earlier Corporate Insolvency Resolution Process ("CIRP") against the associate Company of Corporate Debtor - Uttam Value Steels Limited under Section 7 was filed before the Mumbai Bench and during the pendency of the said petition, the SBI has filed another petition under Section 7 against the Corporate Debtor - Uttam Galva Metallics Limited being Company Petition (I.B.) No.18 of 2018 before the Chandigarh Bench, which was transferred to the Mumbai Bench, where both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocated. (2) Without prejudice to sub-section (1) and notwithstanding anything to the contrary contained in this Code, where a corporate insolvency resolution process or liquidation proceeding of a corporate debtor is pending before a National Company Law Tribunal, an application relating to the insolvency resolution or liquidation or bankruptcy of a corporate guarantor or personal guarantor, as the case may be, of such corporate debtor] shall be filed before the National Company Law Tribunal. (3) An insolvency resolution process or liquidation or bankruptcy proceeding of a corporate guarantor or personal guarantor, as the case may be, of the corporate debtor pending in any court or tribunal shall stand transferred to the Adjudicating Authority dealing with insolvency resolution process or liquidation proceeding of such corporate debtor." 7. The Scheme of the Code as per Section 60 is that Adjudicating Authority, in relation to insolvency resolution and liquidation for corporate persons including corporate debtors and personal guarantors in the NCLT having territorial jurisdiction over the place where the registered office of a corporate person is located. The Corporate Person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication relating to Insolvency Process of a Corporate Guarantor or Personal Guarantor should be filed before the same NCLT. This was to avoid two different NCLT to take up CIRP of Corporate Guarantor. Section 60(2) is applicable only when CIRP or Liquidation Proceeding of a Corporate Debtor is pending, when CIRP or Liquidation Proceeding are not pending with regard to the Corporate Debtor there is no applicability of Section 60(2). 9. Section 60(2) begins with expression 'Without prejudice to sub-section (1)' thus provision of Section 60(2) are without prejudice to Section 60(1) and are supplemental to sub-section (1) of Section 60. 10. Sub-Section 1 of Section 60 provides that Adjudicating Authority in relation to Insolvency or Liquidation for Corporate Debtor including Corporate Guarantor or Personal Guarantor shall be the NCLT having territorial jurisdiction over the place where the Registered Office of the Corporate Person is located. The substantive provision for an Adjudicating Authority is Section 60, sub-Section (1), when a particular case is not covered under Section 60(2) the Application as referred to in sub-section (1) of Section 60 can be very well filed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of admission into CIRP of the Corporate Debtor, this Bench having jurisdiction to appoint a Resolution Professional in the Personal Guarantor of the Corporate Debtor." 10. In paragraph 7, it was noted that CIRP against the Corporate Debtor was initiated on 11.07.2018, which proceeding was admitted and thereafter insolvency resolution process was completed by approval of the Plan by order dated 06.05.2020. The Respondent in paragraph 5 of the reply from (iii) to (xii) has stated necessary ll facts, which are to the following effect: "(iii) The Corporate Debtor - Uttam Galva Metallics Limited ("UGML") defaulted in its repayment obligations under various credit facilities on 30.06.2016 and owing to which the account of UGML was classified as NPA with effect from 28.09.2016. (iv) In December 2017, a Section 7 petition was filed by Respondent against Uttam Value Steels Limited ("UVSL"), an associate company of the UGML, before the Mumbai Bench of the Adjudicating Authority. That under Section 7 of the Code, a petition was also filed against the UGML before the Chandigarh Bench of the Adjudicating Authority. (v) In February 2018, a Company Petition was filed by UVSL only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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