9911796707
TMI Blog2025 (2) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhushan, J. This Appeal has been filed by a promoter/ suspended director of the corporate debtor- 'Metenere Limited' challenging the order dated 04.10.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi allowing the application IA No.37 of 2024 filed by the Resolution Professional for approval of the Resolution Plan. Appellant aggrieved by the impugned order has filed this Appeal. 2. Brief background facts necessary to be noticed for deciding the Appeal are:- 2.1. On an application filed by the State Bank of India, Corporate Insolvency Resolution Process against the Corporate Debtor commenced by order dated 03.10.2020. In the CIRP process, Resolution Plans came to be considered by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Learned Senior Counsel for the Appellant submits that the Resolution Plan which directed payment to be released after decision by the Adjudicating Authority in different application shall lead to reduction of the pay-out to the financial creditors which ultimately shall have bearing on the suspended director and guarantors like Appellant who has given personal guarantee. It is submitted that in the Resolution Plan, it is provided that the financial creditors shall continue to be entitled to avail recourse available to them in relation to the personal/corporate guarantees whereas in the Resolution Plan the liability of the Resolution Applicant has been completely wiped out. It is submitted that the Resolution Plan in a manner is a conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l creditors including the EPFO has not been entertained by this Court against the impugned order relying on the order of the Adjudicating Authority dated 10.09.2024 by which entire amount was deposited. 6. We have considered the submissions of the Counsel for the Appellant and perused the record. 7. Adjudicating Authority in paragraph 11.3 has noticed the earlier order passed on 10.09.2024 where on the request of the CoC, the entire amount was directed to be deposited in a separate interest bearing account. It is useful to extract paragraph 11.3 of the impugned order which is as follows:- "11.3. During the course of hearing on 10.09.2024, the members of CoC represented by Ld. Sr. Counsel Mr. Niranjan Reddy and Ld. Counsel Mr. Ankur Mitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buted to them as per the order of the Adjudicating Authority. In terms of the Resolution Plan the balance will go to the benefit of the CoC members as per their entitlement. 10. In view of the above, the suggested course of action of depositing the plan amount in a separate interest bearing account is accepted, as agreed by parties. The plan Application will be heard and proceeded with. This will also ensure that the SRA will be able to run the Corporate Debtor if the Plan is approved. 11. By consent, the applications of Indian Bank, the employees and vendors and the service provider will be considered separately after the plan application is decided. 12. Accordingly, these IAs will be taken up separately as per the consent obtaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y any member of the promoter Group or any third party to secure the facilities granted by such Financial Creditors. However, to the extent that there are any that subrogation rights such personal/corporate guarantors/third party security may have against the Corporate Debtor, any and all such subrogation rights shall be deemed to be extinguished as on the Payment Date, with no requirement for any further action on part of the Corporate Debtor or the Resolution Applicant." 10. The law is well settled that approval of a Resolution Plan does not ipso facto discharge a personal guarantor. The Hon'ble Supreme Court in "Lalit Kumar Jain vs. Union of India and Ors.- (2021) 9 SCC 321" laid down following in paragraph 125:- "125. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmination in their applications. Entire plan amount has been deposited in the interest bearing account to protect the interests of all the stakeholders with which we do not find any error. The financial creditors having been given the right to proceed against the personal guarantor for the balance liability, it is always open for the financial creditor to proceed against the personal guarantor/ corporate guarantor that being the approved clause of Resolution Plan, Appellant cannot be heard to say anything against that. One more ground which has been taken in the appeal is that after the commencement of the insolvency proceeding against the Appellant against the personal guarantor w.e.f. 01.03.2024, Appellant has not been invited to particip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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