# In the matter of Bank of India Vs. Praveen Gupta, CP (IB) No. 216 (PB)/2021

> NCLT judgment dated 2021-09-30. Citation: TCN-2021-NCLT-00934. 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-00934
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bank-of-india-vs-praveen-gupta-cp-fa9661e3

## 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. Praveen Gupta, 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, which was due from 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 application under Section 7 of the I&B Code against the Corporate Debtor was admitted, and subsequently, the

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## Facts

Bank of India, the Financial Creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Praveen Gupta, 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 30.06.20215. A prior CIRP application under Section 7 of the I&B Code against the Corporate Debtor was admitted on 24.04.2019, and subsequently, the Corporate Debtor was ordered for liquidation on 08.09.2020. A Demand Notice in Form B was issued by Bank of India to the Personal Guarantor on 17.02.2021, in respect of the unpaid

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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 creditor to file an

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**Reasoning:** The court considered the fact that the Corporate Debtor, M/s. Shree Raj Mahal Jewellers

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

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

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

## Timeline

- **2019-04-24 — CIRP Admi…**: CIRP proceedings were admitted against…
- **2020-09-08 — Liquidation…**: The Tribunal allowed the application for liquidation of the Corporate Debtor and…

## 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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