# In the matter of Indian Bank Vs. Pessi Nanabhoy Dadina, CP (IB) No. 110/(KB)/2021

> NCLT judgment dated 2021-09-17. Citation: TCN-2021-NCLT-01101. 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-01101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-bank-vs-pessi-nanabhoy-dadina-cp-f8dd4a55

## 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. Pessi Nanabhoy Dadina, a personal guarantor to KND Engineering Technologies Limited. The applicant, Indian Bank, is a banking company that extended credit facilities to KND, which were secured by personal guarantees from Mr. Dadina. KND defaulted on its payments, leading to its account being declared a

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## Facts

Indian Bank extended credit facilities to KND Engineering Technologies Limited (KND). Mr. Pessi Nanabhoy Dadina, a director of KND, provided personal guarantees to secure these credit facilities. KND defaulted on its payments, and its account was declared a Non-Performing Asset on 2018-05-02. A Corporate Insolvency Resolution Process (CIRP) was initiated against KND, and a resolution plan was approved. Indian Bank, as the Financial Creditor, served a demand notice in Form B on Mr. Dadina on 2020-10-13 under rule 7(1) of the IB Rules, 2019, seeking repayment of the guaranteed amount, but received no response. Indian Bank then filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr.

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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 of the case, including the default by KND

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**Interpretation:** Section 95(1) of the IBC, 2016 provides a mechanism for creditors to recover

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**Application:** Based on the facts presented, the court determined that the application under

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Indian…
- **Respondents:** KND Engineering…; Pessi Nanabhoy…

## Timeline

- **2010-07-12 — Personal Guarantee…**: Respondent executed…
- **2012-03-28 — Personal Guarantee…**: Respondent executed…

## 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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