FAROOQ ALI KHAN Vs. BANK OF BARODA

JUDGEMENT

(1.) The petitioner is before this Court seeking a writ in the nature of prohibition prohibiting the National Company Law Tribunal, Bengaluru ( 'the Tribunal' for short) from entertaining proceedings against him in C.P.(IB) 139/BB/2022 pending on its file filed by the 4th respondent acting on behalf of the 1st respondent.

(2.) Heard Sri S.Basavaraj, learned senior counsel appearing for the petitioner and Sri S.S.Naganand, learned senior counsel appearing for respondent No.1.

(3.) The petitioner is a promoter of a Company by name 'Star Panel Boards Limited' which comes to be incorporated as a public Company in 2011 and its name was then changed to Associate Dcor Limited ( 'the Company for short). Later the petitioner was suspended from the Company. Respondents 1 to 3 Banks acting as consortium of Banks enter into term loan agreements with the Company to grant term loan facilities. The loan becomes sticky. The consortium of Banks later began legal proceedings against the Company initiating proceedings under sub-sec. (2) of Sec. 13 of the SARFAESI Act by filing original application before the Debt Recovery Tribunal, Bengaluru in O.A.No.804 of 2017. The 2nd respondent then initiates proceedings under Sec. 7 of the Insolvency and Bankruptcy Code ( 'the Code' for short) against the Company and the proceedings under the Code are under progress before the Tribunal. On 11/8/2020, respondent No.1 issues a notice to the petitioner seeking to invoke the personal guarantee executed by the petitioner collectively on 10/7/2014. Despite the reply of the petitioner, demand notices come to be issued under the Code without replying to the defence of the petitioner to the aforesaid notices. On 31/12/2021, the 1st respondent files an Application under Sec. 95(1) of the Code through the Resolution Professional against the petitioner which is numbered as CP (IB) 139/BB/2022. On 16/2/2024 the Tribunal passes an order under Sec. 97 of the Code appointing one Ramratan Kanoongo as the Resolution Professional and directed him to submit a report on or before 20/3/2024. The moment the order is passed by the Tribunal, the petitioner has preferred the subject petition.