# In the matter of Akash Jindal, CP (IB) No. 80/94 (1)/JPR/2021

> NCLT judgment dated 2021-11-09. Citation: TCN-2021-NCLT-00574. The case pertains to an application filed by Mr. Akash Jindal, the personal guarantor for M/s…

- **Court:** NCLT
- **Order date:** 9 Nov 2021
- **Citation:** TCN-2021-NCLT-00574
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akash-jindal-cp-ib-no-8094-1jpr2021-5afd101d

## Summary

### Background

The case pertains to an application filed by Mr. Akash Jindal, the personal guarantor for M/s Adig Jemtex Private Limited (Corporate Debtor), under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The Corporate Debtor is undergoing Corporate Insolvency Resolution Process (CIRP) and failed to fulfill its financial obligations to Bank of Baroda, SSI Bhilwara Branch. Consequently, the applicant received a notice dated 03.12.2019 under Section 13(2) of the SARFAESI Act issued by Bank of Baroda seeking invocation of personal guarantee.

## Facts

Mr. Akash Jindal, the applicant, is the personal guarantor for M/s Adig Jemtex Private Limited, the Corporate Debtor. The Corporate Debtor is undergoing Corporate Insolvency Resolution Process (CIRP) and defaulted on its financial obligations to Bank of Baroda, SSI Bhilwara Branch. Mr. Jindal received a notice dated 2019-12-03 under Section 13(2) of the SARFAESI Act from Bank of Baroda seeking invocation of the personal guarantee. The amount in default is stated to be Rs. 40,46,34,952/-, and the date of default is 2020-02-01. Mr. Jindal filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate insolvency resolution. The application is in Form-A and accompanied by the required fees. The applicant has also filed an

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## Issues and analysis

### Issue 1: Whether the application filed by Mr. Akash Jindal under Section 94(1) of the Insolvency and …

**Ratio:** Section 94(1) of the Insolvency and Bankruptcy Code, 2016, allows a debtor to apply for

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**Reasoning:** The Adjudicating Authority observed that the application was in Form-A, accompanied by

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**Interpretation:** Section 94(1) provides the right to a debtor to initiate insolvency

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**Application:** Since the application was in the prescribed format, accompanied by the required

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## Parties

- **Judges:** Deep Chandr…; RaghuNa…
- **Appellants:** Akash J…
- **Respondents:** M/s Adig Jemtex…

## Timeline

- **2019-12-03 — Notice under Section…**: Applicant received a notice from Bank of Baroda…
- **2020-02-01 — Date of D…**: Date of default is…

## 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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