# 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-01100. 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-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-bank-vs-navzer-kersi-dadina-cp-e6d0b582

## 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 for initiating the Insolvency Resolution Process against Mr. Navzer Kersi Dadina, a personal guarantor to KND Engineering Technologies Limited (KND). KND had availed credit facilities from Indian Bank, and Mr. Dadina furnished a personal guarantee to secure the repayment of these loans. KND's account was declared a Non-Performing Asset on 02/05/2018. An earlier CIRP

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## Facts

Indian Bank extended credit facilities to KND Engineering Technologies Limited (KND) for its business purposes. To secure these facilities, Mr. Navzer Kersi Dadina, a director of KND, provided personal guarantees. These guarantees were executed on multiple occasions, including 12/07/2010, 28/03/2012, 29/03/2014, and 03/10/2016. KND defaulted on its payments, leading to its account being declared a Non-Performing Asset on 02/05/2018. Prior to this, a CIRP application against KND was admitted, and a resolution plan was approved. Subsequently, Indian Bank, as the Financial Creditor, issued a demand notice in Form B to Mr. Dadina on 13/10/2020, under rule 7(1) of the IB Rules, 2019, seeking repayment under the personal guarantee. The demand notice was not responded to.

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## Issues and analysis

### Issue 1: Whether the application for initiating the Insolvency Resolution Process against the personal …

**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 applicant's submission, supported by admissible evidence, that

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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.

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## Parties

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

## Timeline

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

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