# 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-01111. 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-01111
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/central-bank-of-india-vs-himanshu-goyal-cp-4f7607ca

## 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 the 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 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 Bank

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## Facts

Central Bank of India, a statutory body, granted loans and credit facilities to BRG Iron & Steel Co. Pvt. Ltd. (BRG), a corporate debtor. Mr. Himanshu Goyal, one of the directors of BRG, provided a personal guarantee for the repayment of the loan. BRG defaulted on its payments, leading to its account being declared a Non-Performing Asset (NPA) on 23.08.2016. The Central Bank of India initiated recovery actions against the guarantors, including Mr. Goyal, under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. Simultaneously, another financial creditor initiated an IBC application against BRG, which was admitted into CIRP on 03/02/2020, and subsequently, the company was put into liquidation. The Central Bank of India then filed an application

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## Issues and analysis

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

**Ratio:** Section 95(1) of the IBC allows a creditor to apply for initiating the insolvency

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**Reasoning:** The court considered the applicant's claim that Mr. Himanshu Goyal, as a personal

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

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

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Central Bank of…
- **Respondents:** BRG Iron & Steel…; BRG Iron & Steel…; +1 more

## Timeline

- **1970-01-01 — Applicant Cons…**: Central Bank of India is constituted under the Banking Companies (Acquisition and…
- **2012-07-10 — BRG 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)

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