# In the matter of Indian Bank Vs. Navzer Kersi Dadina, CP (IB) No. 111/(KB)/2021

> NCLT judgment dated 2021-09-17. Citation: TCN-2021-NCLT-01099. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 17 Sept 2021
- **Citation:** TCN-2021-NCLT-01099
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-bank-vs-navzer-kersi-dadina-cp-e385772e

## 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, seeking to initiate the Insolvency Resolution Process (IR Process) against Mr. Navzer Kersi Dadina, a personal guarantor to KND Engineering Technologies Limited (KND). Indian Bank, the applicant, had extended credit facilities to KND, which were secured by personal guarantees from Mr. Dadina. KND defaulted on its payments, leading to its account being

…

## Facts

Indian Bank extended credit facilities to KND Engineering Technologies Limited (KND) for its business purposes. These credit facilities were secured by personal guarantees furnished by Mr. Navzer Kersi Dadina, who is one of the directors of KND. The personal guarantees were executed to ensure the repayment of loans and advances granted to KND, including interest, costs, and expenses. The credit facilities were enhanced or reduced over time at the request of KND and the guarantor, with personal guarantees executed on 12/07/2010, 28/03/2012, 29/03/2014, and 03/10/2016. KND defaulted on its payment obligations, leading to its account being declared a Non-Performing Asset (NPA) on 02/05/2018. An application under Section 9 of the IBC, 2016 was filed against KND, and the

…

## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016 for initiating the Insolvency …

**Ratio:** Section 95(1) of the IBC, 2016, read with Rule 7(2) of the IB Rules, 2019, and Regulation

…

**Reasoning:** The court considered the application filed by Indian Bank, the financial creditor,

…

**Interpretation:** The interpretation of Section 95(1) is that a creditor can initiate insolvency

…

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

…

## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Indian…
- **Respondents:** KND Engineering…; Navzer Kersi…
- **Advocates:** Debasish Chakrabar…; Trisha Muk…; +1 more

## Timeline

- **2010-07-12 — Execution of Personal…**: Mr. Navzer Kersi Dadina executed a…
- **2012-03-28 — Execution of Personal…**: Mr. Navzer Kersi Dadina executed 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)

---

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/indian-bank-vs-navzer-kersi-dadina-cp-e385772e