# In the matter of Central Bank of India Vs. Jai Kumar Goyal, C.P. (IB)/184(KB)2021

> NCLT judgment dated 2021-09-16. Citation: TCN-2021-NCLT-01108. 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-01108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/central-bank-of-india-vs-jai-kumar-goyal-cp-edb2763e

## 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 (IR Process) against Mr. Jai Kumar Goyal, a personal guarantor to M/s 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 that provided credit

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## Facts

Central Bank of India, the applicant, is a statutory body constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. The applicant is a member of a consortium that extended credit facilities to M/s BRG Iron & Steel Co. Pvt. Ltd. (BRG), the Corporate Debtor. BRG requested non-fund-based credit facilities in 2012. The consortium, including the applicant, initially provided financial assistance to Golden Management Pvt. Ltd., which later merged with BRG. Mr. Jai Kumar Goyal, the respondent, stood as a personal guarantor for BRG. A Master Restructure Agreement was executed on 21.07.2014, following a Letter of Approval (LOA) dated 30.10.2014. Mr. Jai Kumar Goyal and other individuals provided personal guarantees with joint and several

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## 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, 2016 allows a creditor to apply for initiating the insolvency

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**Reasoning:** The court considered the factual matrix, including the personal guarantee executed by Mr.

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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 Mr. Jai

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Central Bank of…
- **Respondents:** BRG Iron & Steel…; MR.JAI KUMA…

## Timeline

- **2012-07-10 — BRG's Request for…**: BRG requested the applicant for…
- **2014-07-21 — Master Restructure…**: The Respondent entered into a…

## 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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