Mr. Gurpreet Singh Sidhu, S/o Shri Nachhattar Singh, R/o Flat No. D-102, Emerging Height, Sector 115, Village Santa Majra, Kharar, Punjab, had filed a petition under Section 94 of the IBC, 2016 before the Hon’ble National Company Law Tribunal (NCLT), Chandigarh, bearing CP (IB) No. 99/Chd/Pb/2023 on 07.01.2024 for initiating insolvency resolution process against himself.Mr. Gurpreet Singh Sidhu is the Director &Personal Guarantor to M/s. Emerin Telecom Private Limited (‘Corporate Debtor’/ ‘Principal Borrower’) and extended a personal guarantee to a Financial Creditor namely, Punjab National Bank. That Ms. Pooja Miglaniwas appointed as the Resolution Professional in the matter w.e.f. 13.12.2023.
Further, the said petition was admitted by the Hon’ble Bench vide its order dated 09.09.2024 which has marked the beginning of the insolvency proceedings against Mr. Gurpreet Singh Sidhu.
BACKGROUND BEHIND THE INITIATION OFINSOLVENCY PROCEEDINGS BY MR.GURPREET SINGH SIDHU:
M/s Emerin Telcom Pvt. Limitedwas incorporated on September 16, 2013. Its Corporate Identification Number is (CIN) U64200CH2013PTC034729 and its registration number is 034729. Its registered address is SCO No.46-47, 1st Floor, Sector 9-D, Chandigarh-16009. Emerin Telcom Pvt. Limited is a private company incorporated on 16thSeptember, 2013. It was engaged in import of mobile Handsets and mobile accessories and trading and distribution of the same in the entire North India.
The Corporate Debtor availed credit facilities from Punjab National Bank to support its operations, secured by personal guarantees from Gurpreet Singh Sidhuand others. However, the Corporate Debtor defaulted on its financial commitments as per the sanction letters and loan agreements. Consequently, the account was declared a Non-Performing Asset (NPA) on February26, 2018. Following this, Punjab National Bank, as the Financial Creditor, initiated legal proceedings by issuing a demand notice dated August16, 2018, under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, against the borrower, M/s Emerin Telecom Pvt. Ltd.The notice specified that the Corporate Debtor owed a sum of Rs. 2,04,73,652.28/-, with a requirement to clear the outstanding amount within 60 days of receiving the notice. Despite this directive, the Corporate Debtor failed to meet its payment obligations within the stipulated timeframe, leading to further legal actions.
The Financial Creditor took decisive action by issuing a Possession Notice on February07, 2019, pursuant to Section 13(4) of the Securitization Act, 2002. Empowered by the provisions of Section 13(4), the Financial Creditor exercised its right to enter the premises and take possession of the secured assets, including plant &machinery, inventories etc. The Financial Creditor, Punjab National Bank, has also filed an
application (OA No. 2383 of 2018“Punjab National Bank v. M/s Emerin Telecom Pvt. Ltd)before Hon’ble Recovery Tribunal-II, Chandigarh which has been decreed on March 18, 2021 and RC No. 50 of 2021 has been issued which is pending before the Ld. Recovery Officer- II, Debts Recovery Tribunal- II, Chandigarh.
Thereafter, the Financial Creditor (Punjab National Bank) has also filed complaint cases under Section 138 of the Negotiable Instruments Act, 1881 and the same is pending before Chief Judicial Magistrate, UT, Chandigarhin which Mr. Gurpreet Singh Sidhu has also been arrayed as ‘co-accused’.
IMPOSITION OF MORATORIUM U/S 101 OF THE CODE
With the admission of application u/s 100, a moratorium has been commenced in relation to all the debts of Mr. Gurpreet Singh Sidhu. Pursuant to the imposition of moratorium under Section 101 of the Code, no legal proceedings can continue or be initiated against the Personal Guarantor in respect of any debt; and the personal guarantor is barred from transferring, alienating, encumbering or disposing of any of his assets or his legal rights or beneficial interest therein.