# In the matter of Bank of Baroda Vs. Saurabh Rathi, CP (IB) No. 510 /(ND)/ 2021

> NCLT judgment dated 2021-10-08. Citation: TCN-2021-NCLT-00768. The case involves an application filed by Bank of Baroda under Section 95 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Oct 2021
- **Citation:** TCN-2021-NCLT-00768
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bank-of-baroda-vs-saurabh-rathi-cp-edd56ad5

## Summary

### Background

The case involves an application filed by Bank of Baroda under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Saurabh Rathi, the personal guarantor to the corporate debtor, M/s RGTL Industries Ltd. The application seeks to initiate an insolvency resolution process against the personal guarantor due to an outstanding debt of Rs. 20,10,27,358/-. The corporate debtor was admitted under the Insolvency Resolution Process by NCLT, New Delhi on 10.04.2019. Bank of Baroda issued a demand notice under FORM-B on 03.09.2020, but the respondent failed to make payments. The applicant claims that the guarantee provided by the respondent is continuing in nature and that the respondent is still liable for the due amount.

## Facts

Bank of Baroda filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Saurabh Rathi, who is the personal guarantor for the corporate debtor, M/s RGTL Industries Ltd. The corporate debtor was admitted into the Insolvency Resolution Process by NCLT, New Delhi, on 10.04.2019. The outstanding debt is Rs. 20,10,27,358/-. Bank of Baroda issued a demand notice on 03.09.2020, which was received by the respondent on 09.09.2020. The respondent replied to the demand notice on 22.09.2020. The applicant submitted a Record of Default by Information Utility. The applicant proposed Mr. Anil Matta as the Resolution Professional. The respondent did not make any representation during the hearing. The guarantee provided by the respondent is

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## Issues and analysis

### Issue 1: Whether the application filed by Bank of Baroda under Section 95 of the Insolvency and Bankruptcy …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Tribunal considered the documents and submissions made by the applicant, including

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**Interpretation:** Section 95 provides a mechanism for financial creditors to recover debts from

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**Application:** The applicant, Bank of Baroda, being a financial creditor, has the right to

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## Parties

- **Judges:** SH. P.S.N.…; SH. NARENDER…
- **Appellants:** Bank of B…
- **Respondents:** M/s RGTL Industrie…; Saurabh…

## Timeline

- **2019-04-10 — Corporate Debtor…**: M/s RGTL Industries Ltd was admitted under Insolvency Resolution Process by NCLT, New…
- **2015-09-29 — Deed of Gua…**: Deed of Guarantee was…

## 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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