# In the matter of Gaurav Aggarwal Vs. Religare Finvest Ltd. CA (AT) No. 215-2018

> NCLAT judgment dated 2018-07-31. Citation: TCN-2018-NCLAT-00177. The Appellant, Gaurav Aggarwal, filed an application before the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 31 Jul 2018
- **Citation:** TCN-2018-NCLAT-00177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gaurav-aggarwal-vs-religare-finvest-ltd-ca-0af1fd7c

## Summary

### Background

The Appellant, Gaurav Aggarwal, filed an application before the Adjudicating Authority seeking a declaration that he is a personal guarantor, making the moratorium order applicable to his personal property. The Adjudicating Authority rejected this application on April 23, 2018, based on the Respondent's claim that the Appellant is a 'Co-Borrower' and not a 'Personal Guarantor'. The appellant referred to a demand notice issued by the respondent under Section 13(2) of the SARFAESI Act, suggesting it was issued to both the Corporate Debtor and the Appellant.

## Facts

Gaurav Aggarwal filed an application claiming to be a personal guarantor, seeking moratorium benefits on his personal property. The Adjudicating Authority rejected his application, stating he was a co-borrower. Religare Finvest Ltd. issued a demand notice under Section 13(2) of the SARFAESI Act. The Respondent argued that Gaurav Aggarwal was a co-borrower with the Corporate Debtor, which was the reason the Corporate Debtor was shown as 'Applicant' and Gaurav Aggarwal and others were shown as 'Co-applicants'. The court found no evidence that Gaurav Aggarwal provided a personal guarantee to Religare Finvest Limited when Allied Strips Ltd. took the loan. Therefore, he could not claim moratorium benefits on his property under Section 13 of the SARFAESI Act.

## Issues and analysis

### Issue 1: Whether the Appellant, Gaurav Aggarwal, is a personal guarantor or a co-borrower with respect to …

**Ratio:** The legal principle is that a personal guarantor is liable for the debt of the principal

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**Reasoning:** The court reasoned that there was no evidence to suggest that Gaurav Aggarwal had given

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**Interpretation:** The interpretation hinges on the distinction between a personal guarantee and a

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**Application:** The court applied this principle to the facts by finding that Gaurav Aggarwal

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Gaurav Ag…
- **Respondents:** Religare Finvest…
- **Advocates:** Sanjeev…; Anandita…

## Timeline

- **2018-04-23 — Rejection of Ap…**: The Adjudicating Authority rejected…
- **2018-01-15 — Demand Notice…**: Religare Finvest Ltd. issued a demand notice…

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