Supreme Law News

Insolvency and Bankruptcy law at NCLT. 250 Cr to 3300 Cr,

Jiwrajka's pulled in the court again as personal guarantors

An array of interesting matters at NCLT, is keeping me super busy these days. Yesterday it was K V Aromatic, where the issue is that under the grab of commercial wisdom of COC, can RP by pass the law and conduct in arbitrary manner ?

We reprensted one of the unsuccessful resolution applicant, who felt that the proceedings were not conducted in the fair manner and hence, the approval of resolution plan stands challenged at NCLT Delhi.

Today, again it is an interesting case at NCLT Ahmedabad, where in respect of guarantors by Small Industries Development Bank of India (SIDBI), under Section 95 of IBC read with rule 7 is listed for initiating Insolvency resolution process of three Jiwrajka brothers of Alok Industries, who took loans to the tune of 3300 cr from several Indian Banks.

The matter was hotly debated from India to London and saw a series of court battles between the promoters and Banks.

Jiwrajka's also went to Supreme Court challenging the constitutional validity of initiating personnel Insolvency of guarantors.

The Supreme Court in the famous Dilip B Jiwrajka V. Union of India, upheld the validity and paved the way for this case.

In this matter I am representing SIDBI and arguing for appointment of Resolution Professional to start the process of Insolvency against three Jiwrajka's brothers.

I know they are going to oppose it by tooth and nail and I will be pitted against some of the best legal luminaries of India in this battle as the stake of three brothers are very high.

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Dr. Ajay Kummar Pandey

( LLM, MBA, (UK), PhD, AIMA, AFAI, PHD Chamber, ICTC, PCI, FCC, DFC, PPL, MNP, BNI, ICJ (UK), WP, (UK), MLE, Harvard Square, London, CT, Blair Singer Institute, (USA), Dip. in International Crime, Leiden University, the Netherlands )

Advocate & Consultant Supreme Court of India, High Courts & Tribunals.