A REPORT UNDER SECTION 99 OF IBC CANNOT BE FILED BY RESOLUTION PROFESSIONAL WITHOUT ADJUDICATING AUTHORITY’S DIRECTIONS: NCLT MUMBAI

The Mumbai Bench, National Company Law Tribunal in the case Bank of Baroda Limited v Mr. Pawan V Kikavat, the bench comprising of Shri H. V. Subba Rao (Judicial Member) Shri Chandra Bhan Singh (Technical Member) observed while adjudicating a petition filed in Bank of Baroda Limited v Mr. Pawan V Kikavat, the bench has directed the Resolution Professional to file a fresh a report under Section 99 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) for recommending approval or rejection of insolvency petition against the Personal Guarantor and which was previously filed by the Resolution Professional on its own accord, without there being any direction from the Adjudicating Authority. The objections are raised by the Personal Guarantor before the NCLT Bench that a report u/s 99 of the IBC cannot be filed until the Adjudicating Authority directs so.

Facts of the Case:

An application is filled by the Petitioner, Bank of Baroda under Section 95 of the IBC seeking initiation of Insolvency Resolution Process against the Respondent or Personal Guarantor, Mr. Pawan V Kikavat, who is the Personal Guarantor of the M/s. Mahavir Roads and infrastructure Pvt. Ltd. (“Corporate Debtor”). However, notice was duly served on the Personal Guarantor.

In the present case, the petitioner had placed on record Demand Notice dated 06.11.2020 issued to the Personal Guarantor invoking the Guarantee and proof of delivery of the Demand Notice and Deed of Guarantee dated 26.04.2012 executed by the Personal Guarantor and the Petitioner had proposed the name of Mr. Kairav Anil Trivedi for Resolution Professional.

The maintainability of the Petition was opposed by the Personal Guarantor on the ground that the Resolution Professional has already filed his report even without passing any order by the Adjudicating Authority, directing him to file his report and appointing him.

Further, it s been directed by the NCLT Bench that the Resolution Professional to examine the petition and file his fresh report within 10 days from the date of the order. Further, the bench fixed the next date of hearing to 29.07.2022 for submission of the report by the Resolution Professional.