Insolvency Resolution Process Initiated Against TAG Offshore Ltd Director Mamta Kishore Apparao
In a significant development, the National Company Law Tribunal (NCLT) has taken the decision to initiate the insolvency resolution process against Mamta Kishore Apparao, the suspended director of offshore and marine vessel support firm TAG Offshore Ltd. This decision comes in the wake of the firm’s failure to repay loans amounting to a staggering Rs372.5 crore to the State Bank of India, for which Apparao stood as the personal guarantor.
The NCLT’s move stems from an application filed by the petitioner bank, SBI, under the insolvency resolution process against Apparao, citing her failure to honor the personal guarantee and continued default in repayment of the availed loan amount. The default payment, exceeding Rs372 crore, dates back to March 20, 2019, with TAG Offshore Ltd being declared a non-performing asset in 2017. Notably, the firm has been undergoing liquidation since September 2019.
Under the directives of the NCLT, a resolution professional (RP) has been appointed to issue a public notice, inviting claims from all creditors of TAG Offshore Ltd. Furthermore, Apparao has been instructed to collaborate with the RP in formulating a repayment plan, aimed at debt restructuring, and to submit the proposal before the tribunal within 21 days.
In response to the bank’s application, Apparao raised a contention regarding the admissibility of the deeds of guarantee, claiming that they were either not stamped or inadequately stamped, and thus inadmissible. However, the tribunal dismissed this argument, emphasizing that the crucial issue at hand is the determination of default on the part of the personal guarantor, rather than the admissibility of documents.
This development underscores the intricacies and legal complexities surrounding insolvency resolution processes, particularly in cases involving personal guarantees and substantial loan defaults. The outcome of this case is poised to have far-reaching implications, not only for the parties involved but also in shaping the dynamics of insolvency and debt recovery proceedings within the corporate domain.
As the insolvency resolution process unfolds, the spotlight remains firmly fixed on the unfolding events, with stakeholders closely monitoring the proceedings and eagerly anticipating the formulation of a viable repayment plan in the best interests of all parties concerned.