SANJAY SARIN Vs. AUTHORISED OFFICER, CANARA BANK

JUDGEMENT

(1.) The Petitioner, who stood as a guarantor to a loan facility, is aggrieved with the recovery action initiated by the bank, against the borrower and himself, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. According to him, once a resolution plan qua the borrower was approved under Sec. 31 of the under the Insolvency and Bankruptcy Code, 2016, the bank's claims stood addressed. Thus, it could not have sought recovery for amounts over and above the amount approved by the NCLT, and seeks a mandamus to that effect. Is the petition maintainable for the above reliefs, is the short question before this court.

(2.) Briefly stated, Mr. Sanjay Sarin ['Petitioner'], stood as a guarantor to a loan of Rs.34.00 crores advanced by Canara Bank (formerly known as Syndicate Bank) ['Respondent No. 1'] to the borrower - Alphabet Heights Pvt. Ltd. (formerly known as Maple Realcon Private Ltd.) ['Respondent No. 3']. Subsequently, corporate insolvency resolution proceedings ['CIRP'] under the Insolvency and Bankruptcy Code, 2016 ['IBC'] were initiated against Respondent No. 3 (which became the corporate debtor) in 2018. Respondent No. 1 participated in the said proceedings as a financial creditor, and filed its claim (for Rs.10,35,18,740.00) before the National Company Law Tribunal, New Delhi Bench ['NCLT']. A resolution plan, accepted by the Committee of Creditors ['CoC'] was approved by the NCLT vide approval Order dtd. 20/2/2020 ['Approval Order']. Under the approved resolution plan, the resolution applicant - Apex Heights Pvt. Ltd. ['Respondent No. 2'], was to make payment of Rs.10,35,00,000.00 to Respondent No. 1 (Rs.03.00 crores in FDR on the date of the Approval Order, and the remaining in 24 equal instalments), but it defaulted.

(3.) Thereafter, proceedings were initiated by Respondent No. 1 under Sec. 13(4) of the SARFAESI Act, and in furtherance thereto, proceedings were also instituted under Sec. 14 of the SARFAESI Act, for taking possession of the security offered by the Guarantor - being the dwelling unit of the Petitioner - as well as for appointment of a receiver. The Petitioner is aggrieved by such action of Respondent No. 1.