# In the matter of UCO Bank Vs. Amit Kumar Kejriwal, CP (IB)/34 (KB)/2021

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00599. The case involves an application filed by UCO Bank under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Nov 2021
- **Citation:** TCN-2021-NCLT-00599
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uco-bank-vs-amit-kumar-kejriwal-cp-e528f949

## Summary

### Background

The case involves an application filed by UCO Bank 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 Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Amit Kumar Kejriwal, a personal guarantor to Swati Mining Private Limited (Corporate Debtor). UCO Bank had granted credit facilities to Swati International (later taken over by Swati Mining Private Limited) starting in 2004. These facilities were enhanced over time, and Mr. Kejriwal executed a Deed of Guarantee. The Corporate Debtor defaulted, leading to its account being declared a Non-Performing Asset. CIRP was

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## Facts

UCO Bank extended credit facilities to Swati International, a partnership firm, starting in 2004. These facilities included Export Packing Credit (EPC) and ad hoc cash credit. In 2008, Swati Mining Private Limited (Corporate Debtor) took over the assets and liabilities of Swati International. The credit facilities were enhanced over the years, with the bank revising its sanction letters multiple times. Mr. Amit Kumar Kejriwal, along with others, executed a Deed of Guarantee for these facilities. The Corporate Debtor defaulted on payments, leading to the account being declared a Non-Performing Asset on 2019-06-30. A Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 2019-07-08. The outstanding amount as of 2019-07-08 was Rs.

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## Issues and analysis

### Issue 1: Whether the application filed by UCO Bank under Section 95(1) of the IBC for initiating the …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, allows a creditor to apply for

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**Reasoning:** The court considered the provisions of Section 95(1) of the IBC and the related rules and

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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 UCO Bank,

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** UCO B…
- **Respondents:** Swati Mining…; Amit Kumar…

## Timeline

- **2004-01-01 — Credit Facilities…**: UCO Bank granted credit…
- **2004-08-26 — Export Packing Credit…**: UCO Bank granted Export Packing Credit (EPC)…

## 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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