Calculate Sujana’s debts NCLT has released the full copy of the judgment

Witness, Hyderabad: A close friend of TDP chief Chandrababu, BJP candidate for Vijayawada West Assembly constituency, former MP Y. Maligi Madhusudana Reddy has been appointed by the Hyderabad bench of the National Company Law Tribunal (NCLT) as the resolution professional for Sujana Chaudhary’s personal insolvency proceedings. Sujana Chaudhary was ordered to take account of the debts. SCLT, which has already agreed to Sujana Chaudhary’s bankruptcy settlement process, has released the full copy of that judgment.

It held that the sale and transfer of assets by Sujana (debtor) in the name of others are void till the end of the bankruptcy proceedings. NCLT Judicial Member Rajeev Bhardwaj, Technical Member Sanjaypuri Bench explained clearly to the resolution professional how the entire insolvency process should be conducted.

Splendid Metal Products Limited, which went into bankruptcy process, paid Rs. 562,84,30,310 (principal plus interest), the bank approached the NCLT in 2021 seeking to declare him an insolvent and initiate debt settlement proceedings as Sujana Chaudhary had personally guaranteed the outstanding loan. The NCLT has appointed Madhusudan Reddy as Interim Resolution Professional (IRP).

The IRP submitted a report stating that the bank had given time to the personal guarantor for repayment of loans, but he had failed to pay. He said that the petition can be allowed and the bankruptcy process can be started. After examining the report and hearing the arguments of both sides, the NCLT gave its verdict.

Main points in the judgment..
We are starting insolvency proceedings against Sujana Chaudhary. A moratorium of 180 days applies on all debts as he is a personal guarantor. During this time, he is prohibited from selling and transferring his property to others. Within 7 days of uploading a copy of our order on the NCLT website, the resolution professional should issue a public notice with full details seeking details from the creditors of Sujana.

These notices should be published in English and mother tongue (Telugu) newspapers of wide circulation in the state where the personal guarantor Sujana and the corporate debtor Splendid Company are domiciled. Creditors are then given 21 days to submit claims. The resolution professional should prepare the list of creditors and other details within 30 days. Sujana should give a report on how payments are made to creditors.

The list of creditors and the Sujana report will be submitted by the resolution professional to the NCLT bench (adjudicating authority). All this process should be completed within 21 days of receipt of last claim. A resolution professional should arrange a meeting with the creditors within 28 days from then. If the resolution professional recommends that this meeting is not necessary, reasons must be given.

Sujana’s report should be submitted to the lenders, take their feedback and submit the details to the NCLT,” it said. The process ends with the lenders agreeing to Sujana’s payment plan. Otherwise, the bankruptcy process will proceed to auction off the assets.