# MR K C M GOWDA vs. ADITYA BIRLA CAPITAL LIMITED & ANR.

> HC judgment dated 2026-06-03. Citation: TCN-2026-HC-00019. Mr. K.C.M. Gowda (Petitioner) filed an application under Section 94(1) of the Insolvency and…

- **Court:** HC
- **Order date:** 3 Jun 2026
- **Citation:** TCN-2026-HC-00019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/karnataka-high-court-bengaluru/mr-k-c-m-gowda-vs-aditya-birla-capital-limited-anr-am6b3

## Summary

### Background

Mr. K.C.M. Gowda (Petitioner) filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) before the National Company Law Tribunal (NCLT), Bengaluru, claiming to be a personal guarantor for credit facilities extended by Aditya Birla Capital Limited to Ace Embedded Intensive Care Units Private Limited. The NCLT dismissed the application, holding that the Petitioner lacked the requisite locus standi. Aggrieved by this order, the Petitioner filed a writ petition before the High Court of Karnataka challenging its legality and correctness.

## Facts

Mr. K.C.M. Gowda (Petitioner) filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016 before the NCLT, Bengaluru.

The Petitioner claimed to have furnished a personal guarantee for credit facilities extended by Aditya Birla Capital Limited to Ace Embedded Intensive Care Units Private Limited.

The alleged personal guarantee was invoked by a notice dated 20.05.2025 issued by Aditya Birla Capital Limited under Section 13(2) of the SARFAESI Act, 2002.

The NCLT, Bengaluru, dismissed the Petitioner's application by an order dated 30.03.2026 (uploaded on 21.05.2026), holding that the Petitioner lacked locus standi.

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## Issues and analysis

### Issue 1: Whether, upon an application being filed under Section 94 of the Insolvency and Bankruptcy Code, …

**Ratio:** The Adjudicating Authority (NCLT) possesses the inherent power and obligation to

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**Reasoning:** The right to initiate insolvency resolution under Section 94 is not universally conferred

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**Interpretation:** Section 94 of the IBC, when read in conjunction with the overall scheme of the

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**Application:** The NCLT was justified in examining whether the Petitioner was indeed a

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## Parties

- **Judges:** SURAJ GOVI…
- **Appellants:** MR K C M…
- **Respondents:** ACE EMBEDDED…; ADITYA BIRLA…
- **Advocates:** SRI. A S VISHWAJIT…; SRI. C.K.…; +2 more

## Timeline

- **2023-11-11 — Facility Agree…**: Date of the Facility Agreement…
- **2025-05-20 — SARFAESI Act…**: Notice issued by M/s. Aditya Birla Capital Limited under Section 13(2) of the SARFAESI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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