NCLT Ahmedabad dismissed a Section 94 IBC petition filed by personal guarantor Awadhesh Narain Tiwari of Zippy Cosmetics.
Tribunal ruled the petition was filed mala fide to delay Janaseva Sahakari Bank's SARFAESI recovery for a Rs 2.99 crore debt.
Petitioner was fined Rs 2 lakh for abuse of process, and interim moratorium under Section 96 was lifted.
Financial creditor is permitted to continue recovery proceedings under SARFAESI Act and other applicable laws.