# In the matter of JM Financial Asset Reconstruction Co Ltd Vs. Mathew John, CP (IBC)/17/KOB/2021

> NCLT judgment dated 2021-09-27. Citation: TCN-2021-NCLT-00998. The National Company Law Tribunal, Kochi Bench, Kerala, heard a batch of petitions…

- **Court:** NCLT
- **Order date:** 27 Sept 2021
- **Citation:** TCN-2021-NCLT-00998
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jm-financial-asset-reconstruction-co-ltd-vs-mathew-john-cp-1c2d7114

## Summary

### Background

The National Company Law Tribunal, Kochi Bench, Kerala, heard a batch of petitions (CP(IBC)/13/KOB/2021, CP(IBC)/14/KOB/2021, CP(IBC)/15/KOB/2021, CP(IBC)/16/KOB/2021, CP(IBC)/17/KOB/2021, CP(IBC)/18/KOB/2021, CP(IBC)/19/KOB/2021) filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. These petitions were filed by JM Financial Asset Reconstruction Company Limited against various personal guarantors of the corporate debtor, M/s. Unitek Power Solutions India Limited, seeking to initiate the Insolvency Resolution Process. The corporate debtor had availed credit facilities

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## Facts

M/s. JM Financial Asset Reconstruction Company Limited filed petitions under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against several personal guarantors (Mrs. Reena Paul, Mrs. Susan Zachariah, Mr. John Zachariah, Mrs. Annu Mathew, Mr. Mathew John, Mr. Korah John, and Mr. K.G. Paul) of the Corporate Debtor, M/s. Unitek Power Solutions India Limited. The Corporate Debtor availed credit facilities from the Federal Bank Limited, including Cash Credit, Bank Guarantee, and Term Loan (IPS). The amount of default was Rs. 38,56,65,007.80 as of 31.05.2021. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the petitions filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to apply either

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**Reasoning:** The Tribunal noted that the Petitioners have complied with Section 95(4) and that the

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

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**Application:** The Tribunal applied Section 95 to the facts of the case, noting that the

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## Parties

- **Judges:** RAJESH S…; Ashok Kumar…
- **Appellants:** M/s. JM Financial…
- **Respondents:** M/s. Unitek Power…; Reena…

## Timeline

- **2013-03-26 — Assignment Ag…**: Financial assets of Corporate Debtor assigned to Applicant by Federal Bank Ltd. under…
- **2019-01-01 — CIRP Admi…**: Application under Section 7 of the Code was allowed, admitting CIRP against Unitek Power…

## 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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