# In the matter of Alchemist Asset Reconstruction Co Ltd Vs. Nita Puri, CP (IB) No. 435 (PB)/2021

> NCLT judgment dated 2021-11-01. Citation: TCN-2021-NCLT-00640. The case involves an application filed by Alchemist Asset Reconstruction Company Ltd. (the…

- **Court:** NCLT
- **Order date:** 1 Nov 2021
- **Citation:** TCN-2021-NCLT-00640
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alchemist-asset-reconstruction-co-ltd-vs-nita-puri-cp-6e07c5f3

## Summary

### Background

The case involves an application filed by Alchemist Asset Reconstruction Company Ltd. (the 'Applicant/Financial Creditor') under Section 95(1) r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process ('IR Process') against Ms. Nita Puri, the Personal Guarantor/Debtor of M/s Moser Baer India Ltd. (the 'Corporate Debtor'). The Applicant claims that the Corporate Debtor defaulted on credit facilities disbursed by the State Bank of Hyderabad (now State Bank of India), and the debt was assigned to the Applicant.

## Facts

Alchemist Asset Reconstruction Company Ltd. filed an application under Section 95(1) of the IBC to initiate the Insolvency Resolution Process against Ms. Nita Puri, the personal guarantor of Moser Baer India Ltd. The State Bank of Hyderabad (now State Bank of India) had disbursed credit facilities to Moser Baer India Limited, the Corporate Debtor, on 22.09.2009 and 18.02.2010. The total debt claimed by the Applicant is Rs 3,45,33,52,893.39 as of 30.06.2021. The erstwhile State Bank of Hyderabad executed a Deed of Assignment dated 30.03.2016, assigning the Corporate Debtor's account to the Applicant. The Applicant placed on record a Guarantee Deed dated 12.02.2013, given by the Personal Guarantor in favor of "CentBank Financial Services Limited" as Security

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## Issues and analysis

### Issue 1: Whether the application to initiate the Insolvency Resolution Process against the personal …

**Ratio:** Section 95(1) of the IBC, 2016, allows a creditor to apply for initiating the insolvency

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**Reasoning:** The court considered the application filed by Alchemist Asset Reconstruction Company

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** The court applied Section 95(1) to the facts of the case, finding that the

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## Parties

- **Judges:** Bhaskara Pantula…; HEMANT KUMAR…
- **Appellants:** Alchemist Asset…
- **Respondents:** Moser Baer India…; Nita…

## Timeline

- **2009-09-22 — Credit Facilities…**: State Bank of Hyderabad sanctioned credit…
- **2010-02-18 — Credit Facilities…**: State Bank of Hyderabad sanctioned credit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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