# In the matter of Bank of India Vs. Ashok Goel, CP (IB) No. 217(PB)/2021

> NCLT judgment dated 2021-09-30. Citation: TCN-2021-NCLT-00933. The Bank of India, as a financial creditor, filed an application under Section 95 of the…

- **Court:** NCLT
- **Order date:** 30 Sept 2021
- **Citation:** TCN-2021-NCLT-00933
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bank-of-india-vs-ashok-goel-cp-27224e3a

## Summary

### Background

The Bank of India, as a financial creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Ashok Goel, the personal guarantor to the corporate debtor, M/s. Shree Raj Mahal Jewellers Private Limited. The corporate debtor had availed loan from a consortium of lenders, including Bank of India, but failed to maintain financial discipline, leading to its account being declared NPA. A Section 7 application was filed against the corporate debtor, and CIRP proceedings were initiated, leading to the liquidation of the corporate debtor.

## Facts

M/s. Bank of India, the financial creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Ashok Goel, the personal guarantor to the corporate debtor, M/s. Shree Raj Mahal Jewellers Private Limited. The corporate debtor had availed loan from a consortium of lenders, including Bank of India. The corporate debtor failed to maintain financial discipline, leading to its account being declared NPA on 30.06.2015. A Section 7 application was filed against the corporate debtor, and CIRP proceedings were initiated. Since no resolution plan was approved, the RP filed an application for liquidation of the CD, which was allowed on 08.09.2020. A demand notice in Form B was issued by Bank of India to Mr. Ashok Goel on 17.02.2021, for

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor, Bank of India, under Section 95 of the …

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

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**Reasoning:** The court reasoned that the corporate debtor had defaulted on its debt, and Mr. Ashok

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**Interpretation:** Section 95 provides a mechanism for financial creditors to recover their dues

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**Application:** The court applied Section 95 to the facts of the case, noting that the

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## Parties

- **Judges:** Shri. Bhaskara…; SHRI. HEMANT…
- **Appellants:** Bank of…
- **Respondents:** M/s. Shree Raj…; ASHOK…
- **Advocates:** Abhishek…

## Timeline

- **2015-06-30 — Account decla…**: The account of the Corporate Debtor was…
- **2018-01-01 — Section 7 Application…**: A Section 7 application under the I&B Code, 2016, was filed against the Corporate Debtor…

## 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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