- (1.) In this CA 52/IB/CB/2017 Sliri Umapathy Rao and Mrs.K.Sharadha have submitted an application. Shri Umapathy Rao, Ex Director and Guarantor of the Corporate Debtor and the 2nd applicant Mrs.K.Sharadha is the guarantor of the corporate debtor. Shri Umapathy Rao has submitted that he has resigned from the Company which has also been communicated to all the members of the Consortium of Banks who had funded the above company as early as 12.02.2005 and he had made a request to consortium of Banks to relieve him from his personal guarantee and also release his properties which has been marked by way of collateral security to Union Bank of India when the loans were disbursed to the corporate debtor. The other applicant Mrs.K.Sharada is also a personal guarantor to the financial credit. The personal guarantors have given their property and have also created charge against the personal properties in pursuance of the loan agreement between M/s.Boss Profiles Limited and Union Bank of India.
(2.) The applicants Mr. K. Umapathi Rao and Mrs. K. Sharada, Guarantors of the Corporate Debtor have prayed to stay of possession notice dated 06.11.2017 issued by the 2nd Respondent for taking possession of the properties of personal guarantors and any step taken or proposed under the SARFAESI Act as against the Guarantors properties. JUDGEMENT_533_LAWS(NCLT)1_2018_1.html Declare that the moratorium granted vide order dated 11.08.2017, prohibits the 2nd respondent herein from proceeding against the assets of the personal guarantors and prosecution of cases against them; and Consequentially, quash the Possession Notice dated 06.11.2017 issued by the 2nd respondent herein for taking possession of the properties of personal guarantors. Interim Order Pending final decision of Application the applicant prays for the following interim reliefs Stay of Possession Notice dated 06.11.2017 issued by the 2nd respondent herein for taking possession of the properties of personal guarantors and all/or any steps under the SARFAESI Act as against this Guarantor properties. ORDER The moratorium is in force, hence no action should be initiated with respect to the possession of the properties of the personal guarantors. This stay will be in force till the moratorium period comes to an end or till the adjudicating authority approves a resolution plan under Sub Section 1 of Section 31 or passes an order for liquidation of corporate debtor under Section 33. This view is based on the decision of the Hon'ble High Court of Allahabad, the operating portion of the judgement is reproduced below; Sanjeev Shriya and Ors. Vs. State Bank of India and Ors. There will be no order as to costs.;