# In the matter of Mahendra Kumar Agarwal vs. PTC India Financial Services Ltd.

> NCLAT judgment dated 2023-08-01. Citation: TCN-2023-NCLAT-00325. The case involves an appeal against an order dated 21.07.2022 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 1 Aug 2023
- **Citation:** TCN-2023-NCLAT-00325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mahendra-kumar-agarwal-vs-ptc-india-financial-services-ltd-a0279790

## Summary

### Background

The case involves an appeal against an order dated 21.07.2022 passed by the National Company Law Tribunal (NCLT), Bench-I, Hyderabad, in CP (IB) No. 335 / 95 / HDB / 2020. The appellant, Mahendra Kumar Agarwal, is the personal guarantor of Gati Infrastructure Bhamsey Power Pvt. Ltd. The appeal was filed due to the appellant being aggrieved by the impugned order. The NCLT had admitted a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, and appointed a Resolution Professional.

## Facts

Mahendra Kumar Agarwal is the personal guarantor for Gati Infrastructure Bhamsey Power Pvt. Ltd. (GIBPPL). PTC India Financial Services Ltd. (PTC) extended financial assistance to GIBPPL, but GIBPPL defaulted on its repayment obligations. IFCI, the lead lender of the consortium, issued a recall notice and invoked the personal guarantee of Agarwal. PTC filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC) before the NCLT, Hyderabad, seeking to initiate insolvency proceedings against Agarwal as the personal guarantor. The NCLT admitted the petition, leading Agarwal to file an appeal before the NCLAT. Agarwal argued that the NCLT lacked jurisdiction because no corporate insolvency resolution process (CIRP) was pending against GIBPPL. PTC contended

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has jurisdiction to entertain insolvency proceedings against the …

**Ratio:** Section 60(1) of the I&B Code provides that the Adjudicating Authority for insolvency

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**Reasoning:** The NCLAT reasoned that Section 60(1) provides the NCLT with jurisdiction over insolvency

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**Interpretation:** Section 60(1) is interpreted to grant the NCLT broad jurisdiction over

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**Application:** The NCLAT applied the ratio to the facts of the case, concluding that the NCLT,

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## Parties

- **Judges:** M. Venu…; Shreesha…; +1 more
- **Appellants:** Mahendra Kumar…
- **Respondents:** Gati Infrastructur…; PTC India…
- **Advocates:** Sandeep…; Pragya Ch…

## Timeline

- **2022-07-21 — Impugned…**: Order passed by the Adjudicating Authority (National Company Law Tribunal, Bench – I,…
- **2023-01-01 — Company Appea…**: Company Appeal (AT) (CH) (INS.) No. 8 of 2023 filed before the National Company Law…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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