# In the matter of CFM Asset Reconstructions Pvt. Ltd. Vs. Ragini Jain Noida Software Technology Park Ltd. (IB)-1091-(PB)-2020

> NCLT judgment dated 2021-01-04. Citation: TCN-2021-NCLT-03410. The case involves an application filed under Section 95 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 4 Jan 2021
- **Citation:** TCN-2021-NCLT-03410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cfm-asset-reconstructions-pvt-ltd-vs-ragini-jain-noida-software-technology-park-10e6998e

## Summary

### Background

The case involves an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC) by CFM Asset Reconstruction Private Limited, a creditor, against Mrs. Ragini Jain, the guarantor of Noida Software Technology Park Limited, the corporate debtor. CIRP had already been initiated against the corporate debtor, followed by a liquidation order. The creditor filed the application based on the guarantor's failure to fulfill the guarantee after the principal borrower defaulted on a loan of ₹25Crore from Indian Bank. The creditor issued a notice to the guarantor on 15.07.2020, demanding payment, but received no response.

## Facts

CFM Asset Reconstruction Private Limited filed an application under Section 95 of the IBC against Mrs. Ragini Jain, guarantor of Noida Software Technology Park Limited. Noida Software Technology Park Limited had already undergone CIRP and liquidation. The application was based on a personal guarantee executed by Mrs. Jain on 04.03.2013, promising to repay a loan if the principal borrower, Noida Software Technology Park Limited, defaulted. The principal borrower had obtained a loan of ₹25Crore from Indian Bank and defaulted, leading to the account being declared NPA. The creditor issued a notice to the guarantor on 15.07.2020, demanding payment within 14 days, but received no response. The creditor served the application on the debtor via email on 23.12.2020 and hard

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## Issues and analysis

### Issue 1: Whether the application filed by CFM Asset Reconstruction Private Limited under Section 95 of the …

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

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**Reasoning:** The court noted that the guarantor had executed a personal guarantee and failed to

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**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency resolution

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**Application:** In this case, Mrs. Ragini Jain executed a personal guarantee for the loan taken

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** CFM Asset…
- **Respondents:** Noida Software…; Ragini Jain M/s.…
- **Advocates:** Ruchi K…; Nidhi J…; +3 more

## Timeline

- **2013-03-04 — Personal Guarantee…**: Mrs. Ragini Jain executed a personal guarantee stating she would pay the loan to the…
- **2019-08-02 — CIRP Init…**: CIRP was initiated against Noida…

## 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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