# In the matter of Bank of India Vs. Pradeep Goel, CP (IB) -220 (PB)/2021

> NCLT judgment dated 2021-09-30. Citation: TCN-2021-NCLT-00940. The case pertains to an application filed by Bank of India, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 30 Sept 2021
- **Citation:** TCN-2021-NCLT-00940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bank-of-india-vs-pradeep-goel-cp-420449d6

## Summary

### Background

The case pertains to an application filed by Bank of India, the Financial Creditor, under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Pradeep 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 an 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 as NPA on 30.06.20215. A Section 7 application against the Corporate Debtor was admitted on 24.04.2019, and subsequently, liquidation was

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## Facts

M/s. Shree Raj Mahal Jewellers Private Limited (Corporate Debtor) availed loan from a consortium of lenders including Bank of India (Financial Creditor). The Corporate Debtor defaulted on the loan, leading to its account being declared NPA on 30.06.20215. A Section 7 application against the Corporate Debtor was admitted on 24.04.2019, and liquidation was ordered on 08.09.2020. Mr. Pradeep Goel acted as the Personal Guarantor for the Corporate Debtor. The outstanding debt as of 31.01.2021, including interest, amounts to Rs. 113,83,35,138.07/-. Bank of India issued a Demand Notice on 17.02.2021 to the Personal Guarantor. The Financial Creditor filed an application under Section 95 of the IBC to initiate Insolvency Resolution Process against the Personal Guarantor. 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, read with Rule 7 of the

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**Reasoning:** The court considered the submissions of the Ld. Counsel for the applicant, the

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**Interpretation:** Section 95 of the IBC allows a financial creditor to apply for initiating the

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**Application:** The court applied Section 95 of the IBC and Rule 7 of the related rules to the

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## Parties

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

## Timeline

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

## 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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