# In the matter of Central Bank of India Vs. Himanshu Goyal, C.P. (IB)/185(KB)2021

> NCLT judgment dated 2021-09-16. Citation: TCN-2021-NCLT-01107. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Sept 2021
- **Citation:** TCN-2021-NCLT-01107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/central-bank-of-india-vs-himanshu-goyal-cp-3e2d5a45

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019 and Regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, to initiate the Insolvency Resolution Process against Mr. Himanshu Goyal, a personal guarantor to the corporate debtor, BRG Iron & Steel Co. Pvt. Ltd. The applicant, Central Bank of India, is a statutory body constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and a member of a consortium finance account termed as UCO

…

## Facts

Central Bank of India, the applicant, is a statutory body under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. BRG Iron & Steel Co. Pvt. Ltd. (BRG) requested credit facilities from the UCO Bank Consortium, of which the applicant is a member. The applicant granted loans and credit facilities to BRG. Subsequently, the consortium provided financial assistance to Golden Management Pvt. Ltd., which later merged with BRG. Mr. Himanshu Goyal, the respondent, stood as a personal guarantor for BRG's debts and entered into a Master Restructure Agreement dated 2014-07-21. BRG defaulted on its payments, leading to its account being declared a Non-Performing Asset on 2016-08-23. The applicant initiated action under the Recovery of Debts Due to Banks

…

## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 for …

**Ratio:** Section 95(1) of the IBC allows a creditor to initiate the insolvency resolution process

…

**Reasoning:** The court considered the application filed under Section 95(1) of the IBC, along with the

…

**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

…

**Application:** The court applied Section 95(1) to the facts of the case, noting that Mr. Goyal

…

## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Central Bank of…
- **Respondents:** BRG Iron & Steel…; Himanshu…

## Timeline

- **1970-01-01 — Applicant Inco…**: Central Bank of India constituted under the Banking Companies (Acquisition and Transfer…
- **2012-07-10 — Request for Credit…**: BRG requested the applicant for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/central-bank-of-india-vs-himanshu-goyal-cp-3e2d5a45