# In the matter of State Bank of India vs. Mr. Hemant Bohra  vide CP No. (IB) 19-95(1)-JPR-2021

> NCLT judgment dated 2021-07-16. Citation: TCN-2021-NCLT-01689. The case involves an application filed under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Jul 2021
- **Citation:** TCN-2021-NCLT-01689
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-mr-hemant-bohra-vide-cp-no-f4f45eb6

## Summary

### Background

The case involves an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the State Bank of India, the Financial Creditor, through the Resolution Professional, Mr. Manohar Lal Vij, against Mr. Hemant Bohra, the Personal Guarantor to the Corporate Debtor, Bohra Industries Limited. The application seeks to initiate insolvency resolution process against the Personal Guarantor. The Corporate Insolvency Resolution Process of Bohra Industries Limited was admitted under Corporate Insolvency Resolution Process by an NCLT Jaipur Order dated 07.08.2019. The Petitioner has enclosed a copy of the Sanction Letter dated 10.06.2017 and Supplementary Deed of Guarantee dated 05.09.2017.

## Facts

State Bank of India, as the Financial Creditor, filed an application under Section 95 of the I&B Code through Resolution Professional Mr. Manohar Lal Vij against Mr. Hemant Bohra, the Personal Guarantor to the Corporate Debtor, Bohra Industries Limited. The Corporate Insolvency Resolution Process of Bohra Industries Limited was admitted by an NCLT Jaipur order dated 07.08.2019. State Bank of India had given a loan to Bohra Industries Limited, supported by a personal guarantee from Mr. Hemant Bohra. A sanction letter dated 10.06.2017 and a supplementary deed of guarantee dated 05.09.2017 were executed. A demand notice was issued to the Personal Guarantor on 25.08.2020, and it was delivered on 19.09.2020. The application under Section 95 was filed on 09.03.2021. The

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## Issues and analysis

### Issue 1: Whether there is a default on the part of the Personal Guarantor by not fulfilling the debt owed to …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016 read with Rule 7 of the IBBI

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**Reasoning:** The Bench notes that a Demand Notice was issued by the Financial Creditor on 25.08.2020

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**Interpretation:** Section 95 of the IBC allows a creditor to initiate insolvency proceedings

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**Application:** The Financial Creditor issued a demand notice to the Personal Guarantor on

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## Parties

- **Judges:** Ajay Kumar…; RAGHU N…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Bohra Industries…; Hemant…

## Timeline

- **2019-08-07 — CIRP Admi…**: Corporate Insolvency Resolution Process of Bohra Industries Limited admitted by NCLT…
- **2017-06-10 — Sanction Lett…**: Date of the Sanction…

## 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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