# In the matter of Iqbal Jumabhoy vs. Shri Manoj Kumar and Anr.

> NCLAT judgment dated 2025-04-07. Citation: TCN-2025-NCLAT-00117. These are two company appeals filed by Iqbal Jumabhoy and Hussain Somjee, who are personal…

- **Court:** NCLAT
- **Order date:** 7 Apr 2025
- **Citation:** TCN-2025-NCLAT-00117
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/iqbal-jumabhoy-vs-shri-manoj-kumar-and-anr-83b743df

## Summary

### Background

These are two company appeals filed by Iqbal Jumabhoy and Hussain Somjee, who are personal guarantors to a loan agreement between Indiabulls Housing Finance Limited (IHFL) and M/s. Raffles Residency Private Limited. The appeals challenge the orders passed by the Adjudicating Authority under Section 100 of the I&B Code, 2016, admitting applications filed under Section 95 for initiation of Insolvency Resolution Process (IRP) against the personal guarantors. The Appellants argue that the orders were passed without providing them an effective hearing prior to the acceptance of the Resolution Professional's report under Section 99 of the I&B Code, 2016. The Appellants also contend that the Financial Creditor relied upon the same loan agreement and personal guarantee

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## Facts

Indiabulls Housing Finance Limited (IHFL) entered into a loan agreement with M/s. Raffles Residency Private Limited, with Iqbal Jumabhoy and Hussain Somjee acting as personal guarantors. IHFL issued a demand notice on 14.02.2020 under Section 13(2) of the SARFAESI Act, 2002, and another notice on 20.02.2020 under Rule 7(1) of the Insolvency and Bankruptcy Rules, 2019. IHFL filed applications before DRT, Bengaluru, in IR No. 39 and 40 of 2020 on 12.08.2020 to invoke the personal guarantees. A settlement agreement was allegedly reached on 01.02.2022, leading to the withdrawal of DRT proceedings. IHFL assigned the debt to Indiabulls Asset Reconstruction Company Private Limited (IBARCL) on 30.09.2020, who further assigned it to Asset Care and Reconstruction Enterprise

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority violated the principles of natural justice by not providing the …

**Ratio:** The principles of natural justice require that a party be given an opportunity to be

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**Reasoning:** The Tribunal relied on the judgment of the Supreme Court in Dilip B Jiwrajka Vs. Union of

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**Interpretation:** The principles of natural justice are not violated if the debtor is given an

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**Application:** In this case, the Tribunal found that the Appellants had been given sufficient

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** IQBAL JUM…
- **Respondents:** Manoj Kumar…
- **Advocates:** P.H. Arvindh…; Avinash Krishnan…; +10 more

## Timeline

- **2018-03-21 — Loan Agre…**: Indiabulls Housing Finance Limited (IHFL) entered into a loan agreement with M/s. Raffles…
- **2020-02-14 — Demand Notice under…**: IHFL issued a demand notice under…

## 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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