# In the matter of ICICI Bank Ltd Vs. Prashant Bothra, CP (IB/ 181(KB)/2021

> NCLT judgment dated 2021-09-16. Citation: TCN-2021-NCLT-01114. 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-01114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/icici-bank-ltd-vs-prashant-bothra-cp-57b99981

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) r/w 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. Prashant Bothra, a personal guarantor to Kohinoor Paper and Newsprint Private Limited (KPNPL). ICICI Bank, the applicant, had extended credit facilities to KPNPL, which defaulted on its repayment obligations. The applicant had previously filed an application before the Debt Recovery Tribunal-III at Kolkata,

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## Facts

ICICI Bank Limited, the applicant, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Prashant Bothra, a personal guarantor to Kohinoor Paper and Newsprint Private Limited (KPNPL). KPNPL had approached ICICI Bank for financial facilities, which were granted through Facility Agreements dated 24/06/2011. KPNPL defaulted on its repayment obligations, leading ICICI Bank to classify the account as a non-performing asset. Mr. Prashant Bothra executed two personal guarantees on 30/03/2015 in favor of ICICI Bank to secure the repayment of KPNPL's debts. ICICI Bank issued a Demand Notice in Form B on 18/03/2021 under Rule 7(1) of the IB Rules, 2019, but received no response. KPNPL was

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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 provisions of Section 95(1) of the IBC, 2016, and the related

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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, considering the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** ICICI Bank…
- **Respondents:** Kohinoor Paper…; Prashant…

## Timeline

- **2011-06-24 — Facility Agr…**: Facility Agreements executed…
- **2015-03-30 — Personal Gua…**: Mr. Prashant Bothra executed two…

## 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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