# In the matter of Amit Jain
Siemens Financial Services Private limited Company Appeal (AT) (Insolvency) No. 292 of 2022

> NCLAT judgment dated 2022-08-23. Citation: TCN-2022-NCLAT-00269. This case involves an appeal against an order dated 03.02.2022 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 23 Aug 2022
- **Citation:** TCN-2022-NCLAT-00269
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amit-jain-siemens-financial-services-private-limited-company-appeal-at-insolvenc-9a95539d

## Summary

### Background

This case involves an appeal against an order dated 03.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Bench IV, concerning an application under Section 95 of the Insolvency and Bankruptcy Code, 2016. The respondent, Siemens Financial Services Pvt. Ltd., filed the application against the appellant, Amit Jain, who is the personal guarantor for loans sanctioned to CMI Ltd. (Corporate Debtor). The Adjudicating Authority ordered the initiation of an interim moratorium under Section 96 and appointed a Resolution Professional. The appellant challenges this order, arguing that Section 10A of the I&B Code, which prohibits the initiation of CIRP against a corporate debtor for defaults arising during a specific period, should also

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## Facts

Siemens Financial Services Pvt. Ltd. (Respondent) sanctioned loan cum hypothecation amounting to Rs.1,59,00,000/- and Rs.71,00,000/- to CMI Ltd. (Corporate Debtor/Principal Borrower). Amit Jain (Appellant) stood as Personal Guarantor to the said transaction. Two Master Finance Agreements dated 13.02.2020 were executed between the Corporate Debtor, the Appellant (Personal Guarantor), and the Respondent (Financial Creditor). The Corporate Debtor defaulted on EMI payments in 2020. The Respondent filed a Company Petition (IB) No. 707/ND/2021 under Section 95 of the I&B Code in November 2021, claiming a default of Rs.2,44,57,796/-. The account was declared NPA on 11.09.2020. The Adjudicating Authority passed an impugned order on 03.02.2022, issuing notice to the

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## Issues and analysis

### Issue 1: Whether the benefit of Section 10A of the I&B Code can be claimed by a Personal Guarantor, …

**Ratio:** The principle of statutory interpretation dictates that when the language of a statute is

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**Reasoning:** The court reasoned that Section 10A's suspension of CIRP initiation applies only to

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**Interpretation:** Section 10A is interpreted as a specific provision designed to protect

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**Application:** In this case, the court applied the principle of statutory interpretation to

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Amit…
- **Respondents:** CMI L…; Siemens Financial…

## Timeline

- **2020-02-13 — Execution of Master…**: Two Master Finance Agreements were executed between CMI Ltd., Amit Jain (Personal…
- **2020-01-01 — Default on EMI…**: CMI Ltd. defaulted on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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