T. Venkattram Reddy v. 1. National Company Law Tribunal

Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue any order, direction or Writ, more particularly in the nature of Writ of Certiorari (i) quashing the order dt. 24;06.2022 passed by the Respondent no. 1 in CP(IB) No. 88/95 tHDBtzO21 as being wholly without jurisdiction and (ii) Writ of Prohibition prohibiting the Respondent no. 2 in any manner whatsoever in CP(IB) No. entertaining/conducting/proceeding g8/g5/HDB 12022 pending on the file of Respondent no. 1 and consequently set aside and declare the entire proceedings and all subsequent orders as being wholly without jurisdiction and in contravention of the provisions of its parent statute, being lnsolvency and Bankruptcy Code, 2016 and its rules there under. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to dispense with the filing of the certified copies of the order dated 24.06.2022, 12.11.2024. and 19.12.2025 passed in CP (lB) No. 88/95/HD812021, l.A. (lBC) No.744 of 2024 in CP (lB) No.88/95/HDBl2O21and l.A. (lBC) No.534 in 2025 in CP (lB) No. B8/95/HD812021, respectively, by the Ld. Tribunal under the lnsolvency and Bankruptcy Code, 2016. lA NO: 2 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the order dt. 19.12.2025 passed in l.A. (lBC) No. 534 in 2025 in CP (lB) No. 88/95/HDB 12021. lA NO: 3 OF 2O2s .Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all proceedings pending on the file of the National Company Law Tribunal, Hyderabad -Bench I in CP(IB) No. 88/951HDB.12021. Counsel for the Petitioner : SRI VADEENDRA JOSHT c o u n s e I ro r t h e R e s po n de;: $i i- f'L! y^ilS^= [i=.: D y. s o r i c i to r or r n d i a Counsel for the Respondent No.2 : SRI V.ANEESH- - Counsel for the Respondent No.3&4 : -- The Court made the following: ORDER TN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE THE CHIEF E SRI APAR-ESH SINGH AND THE HON'BLB SRI JUSTICE HIUDDIN WRIT PETITIO No.39689 of 2025 DATED: 24.12.2025 Between: T.Venkattrarn Reddy AND ... Petitioner National Company Law Tribunal, Hyderabad Bench - I, Office at Corporate Bhawan, Bandlaguda Tattiannaram Vil lage, Hay atnagar Mandal, Rangareddy District, Hyderabad-500068 & 3 others ORDER: Respondents Heard Mr. Vadeendra Joshi, leamed counsel appearing for the petitioner, { Mr. B.Mukherjee, learned counsel representing Mr. N.Bhujanga Rao, learned Deputy Solicitor General of India appearing for respondent No.1 and Mr. V.Aneesh, learned counsel appearing for respondent No.2 through video conference. 2

2. The present petitioner is facing proceedings under Section 123 read with Section 60(2) of the Insolvency and Bankruptcy Code, 2016 read with Rule 7 of the Insolvenc)' and Bankruptcy (Application to Adjudicating Authority for lnsolvency Resolution Process fbr Pers<-rnal Guarantors to Corporate Debtor) Rules, 2019. He was the Personal Guarantor to the Corporate Debtor, respondent No.4 herein. The proceedings as against the Corporate Debtor ended up on 03.06.2019 on approval of the Resolution Plan. However, at the instance of the Financial Creditor, this proceeding has been initiated against the petitionerlPersonal Guarantor wherein vide impugned order dated 19.12.2025, the learned National Company Law .l-ribunal (NCLT), Hyderabad Bench-I, Hyderbad has declared him to be bankrupt

3. Learned counsel for the petitioner has relied upon a decision of the Madras High Court in the case of Rohit Nath alias Rohit Rabindra Nath v. KEB Hana Bank Ltd.r and submitted that when the insolvency proceedings against a Corporate Debtor has come to a close and there are no resolution proceedings pending before the NCLT, no Corporate Insolvency Resolution Process can be initiated against the Personal Guarantor. Such proceedings for recovery can only be initiated before the jurisdictional Debts Recovery Tribunal and not to any other forum. It is submitted that similar issue is involved in W.P.Nos.6860 of 2025 and9972 of 2025 in which the leamed Coordinate Bench tzozt scc online Mad2734 J / of this Court has passed interim orders dated 19.03 .2025 and 07.0 4.2025. Learned counsel for the ltetitioner, therefore, prays that the instant matter ma' also be heard along with those cases. Interim order in sirnilar tenns may be granted. I

4. Leamed counsel for lespondent No.2/Financial Creditor submits that the initiation of insolvency proceedings by order dated 24.06.2022 has already been challenged by the petitioner before the NCLAT, Chenr-rai wherein the judgrnent has been rescrved. It is subnritted that the same order has been challe.ged in the present ivrit petition by invoking parallel rernedies. Therefore, this Couft mav not interfere in thc matter

5. We are not aware whether in these two cases i.e., W.P.Nos.6860 of 2025 and 9972 of 2025, any NCLAT appeal was also filed and was pending when the interirn orders were passed. 6' [n the aforesaid facts and circutnstances and upon hearing learned counsel for the parties, since the challenge to the order of initiation of insolvency proceedings in the satne matter is under challenge before the NCLAT, Chennai, where judgrnent has been reserved, we do not approve of raising this issue after almost three years by the petitioner in a proceeding under Article 226 of the Constitution of India. 4

7. Therefore, the instant Writ Petition is disrnissed. However. there shall be no order as to costs Miscellaneous applications pending, if an1', shall stand closed. I t i I I I i i i I t I To, SE TION OFFICER //TRUE COPY/ SD/.T. SRIDEVI REGISTRAR

1. One CC to SRt VADEENDRA JOSHI, Advocate. top 2 one cc to sRr N.BHqJANGA RAo, Deputy Soricitor Generar of rndia, High Court for the Srate or rerJnsai,iuiuvo.lriiir;. iopudf One CC to SRt V.ANEESH, Advocate. tOpUCI 3 4. Two CD Copies. BSK BS .gF HIGH COURT DATED:2411212025 / TiiE S ( iiC :t 0 5 r[8 2C26 1r ,t' ORDER WP.No.39689 of 2025 DISMISSING THE WRIT PETITION WITHOUT COSTS SV g9' ol -'l-B-