# 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-00928. The case involves an application filed by Bank of India, the Financial Creditor, under Section…

- **Court:** NCLT
- **Order date:** 30 Sept 2021
- **Citation:** TCN-2021-NCLT-00928
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bank-of-india-vs-ashok-goel-cp-5e5c73bc

## Summary

### Background

The case involves an application filed by Bank of India, the Financial Creditor, 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 application seeks to initiate the Insolvency Resolution Process against the personal guarantor due to outstanding debt of Rs. 113.83 crores as of 31.01.2021, owed by the Corporate Debtor. 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 prior CIRP proceeding was initiated against the Corporate Debtor under Section 7 of the I&B Code, and the Corporate Debtor is currently

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## 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 availed loan from a consortium of lenders, including Bank of India, Federal Bank, Central Bank of India and Corporation Bank, under a Working Capital Consortium Agreement. The Corporate Debtor failed to maintain financial discipline, leading to its account being declared NPA on 30.06.20215. A Section 7 application was filed against the Corporate Debtor, leading to CIRP proceedings, and subsequently, liquidation. A demand notice was issued by Bank of India to the Personal Guarantor on 17.02.2021, for the

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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 considered the application filed by the Financial Creditor, the outstanding

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

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**Application:** The court found that the application filed by Bank of India met the

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## Parties

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

## Timeline

- **2019-04-24 — CIRP Admi…**: The Hon'ble Tribunal admitted the CIRP…
- **2020-09-08 — Liquidation…**: The Tribunal allowed the application for…

## 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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