# In the matter of Mayank Shah Vs. Praful Nanji Satra C.P.(IB)-1207-(MB)-2020

> NCLT judgment dated 2021-01-15. Citation: TCN-2021-NCLT-03298. This case involves a petition filed under Section 95(1) of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 15 Jan 2021
- **Citation:** TCN-2021-NCLT-03298
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mayank-shah-vs-praful-nanji-satra-cp-615e326e

## Summary

### Background

This case involves a petition filed under Section 95(1) of the Insolvency and Bankruptcy Code (IBC) against a personal guarantor. The petitioner sought to withdraw the petition, citing pending adjudication before the Supreme Court regarding the applicability of insolvency proceedings against personal guarantors to corporate debtors. The petitioner requested permission to withdraw the petition with the liberty to file fresh proceedings later.

## Facts

A petition was filed under Section 95(1) of the Insolvency and Bankruptcy Code against the personal guarantor, Praful NanjiSatra. The petitioner, Mayank Shah, sought to withdraw the petition. The reason for withdrawal was the pending adjudication before the Supreme Court regarding the applicability and validity of provisions related to personal guarantors to corporate debtors under the IBC. The notification dated 15th November, 2019, issued by the Ministry of Corporate Affairs, brought into force certain provisions of the IBC relating to 'personal guarantors to corporate debtors' with effect from 1st December, 2019. These provisions are now challenged and pending adjudication before the Supreme Court. The petitioner requested the court to permit withdrawal of the

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## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition filed under Section 95(1) of the …

**Ratio:** The court has the discretion to allow the withdrawal of a petition if it deems fit,

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**Reasoning:** The court considered the petitioner's submission that the issues pertaining to insolvency

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**Interpretation:** The interpretation of Section 95(1) of the IBC, in conjunction with the

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**Application:** The court applied the principle of judicial efficiency and deference to the

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## Parties

- **Judges:** Chandra Bha…; SUCHITRAKAN…
- **Appellants:** Mayank…
- **Respondents:** Praful Nanj…

## Timeline

- **2019-11-15 — Notificatio…**: Notification issued by the Ministry of Corporate Affairs bringing into force certain…
- **2019-12-01 — Effective…**: The provisions of the Insolvency and Bankruptcy Code, 2016 relating to 'personal…

## 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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