# In the matter of Manoj Aggarwal & Ors. vs. Karnataka Bank Ltd.

> NCLAT judgment dated 2025-09-02. Citation: TCN-2025-NCLAT-00498. Two appeals were filed by a mother and son, who are co-guarantors for the same Corporate…

- **Court:** NCLAT
- **Order date:** 2 Sept 2025
- **Citation:** TCN-2025-NCLAT-00498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manoj-aggarwal-ors-vs-karnataka-bank-ltd-a3558766

## Summary

### Background

Two appeals were filed by a mother and son, who are co-guarantors for the same Corporate Debtor, M/s MMR Agro Foods Pvt. Ltd. Both had filed Section 94 petitions which were dismissed by the Adjudicating Authority (NCLT, New Delhi, Bench-III).

## Facts

M/s MMR Agro Foods Pvt. Ltd. obtained credit facilities from Karnataka Bank.

Smt. Vimla Devi and Shri Manoj Aggarwal stood as personal guarantors for the Corporate Debtor.

The account of the Corporate Debtor was declared as NPA on 30.11.2022.

Section 13(2) Notice under SARFAESI Act was issued on 26.12.2022.

Possession Notice was sent to the guarantor by the Court Receiver on 26.05.2023.

Smt. Vimla Devi filed Petition No. 455 of 2023 under Section 94 of the IBC, which was dismissed for non-prosecution on 01.04.2024.

Smt. Vimla Devi filed a second Section 94 application bearing Petition No. 380 of 2024, which was also dismissed for non-prosecution on 10.07.2024.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in dismissing the restoration applications for the Section …

**Ratio:** The Adjudicating Authority did not err in dismissing the restoration applications as the

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**Reasoning:** The appellants were given ample opportunity to appear and present their case, but they

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**Interpretation:** The IBC emphasizes timely resolution of insolvency cases, and the Adjudicating

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**Application:** The tribunal applied the principles of the IBC and found that the appellants'

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Manoj Agg…; Vimla…
- **Respondents:** MMR Agro Foods…; Karnataka Bank…
- **Other parties:** MANISH…
- **Advocates:** Sh. Gulshan Kumar…; Gautam Si…; +7 more

## Timeline

- **30.11.2022 — Account decla…**: The account of the Corporate Debtor was…
- **26.12.2022 — SARFAESI…**: Section 13(2) Notice under…

## 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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