# In the matter of UCO Bank Vs. Ashok Kumar Kejriwal, CP (IB)/32 (KB)/2021

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00600. The application was filed by UCO Bank, a financial creditor, to initiate the insolvency…

- **Court:** NCLT
- **Order date:** 3 Nov 2021
- **Citation:** TCN-2021-NCLT-00600
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uco-bank-vs-ashok-kumar-kejriwal-cp-1e78ea60

## Summary

### Background

The application was filed by UCO Bank, a financial creditor, to initiate the insolvency resolution process against Ashok Kumar Kejriwal, a personal guarantor to Swati Mining Private Limited (Corporate Debtor), due to the Corporate Debtor's default in repaying credit facilities.

## Facts

UCO Bank, the applicant and financial creditor, granted credit facilities to Swati International, a partnership firm, in 2004, including an Export Packing Credit (EPC) limit of Rs. 1.75 crores. In 2006, an ad-hoc cash credit facility of Rs. 2.00 crores was sanctioned, which was later enhanced to Rs. 2.25 crores in 2007, while the EPC limit remained at Rs. 1.75 crores, as per the sanction letter dated 28th March 2007 . In 2008, Swati Mining Private Limited, the Corporate Debtor, took over all assets and liabilities of Swati International. In 2009, UCO Bank issued a fresh sanction letter to the Corporate Debtor, confirming a cash credit limit of Rs. 4 crores and a BG limit of Rs. 0.7273 crores. The bank further revised its sanction limits to Rs. 5 crores in 2011 and then

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## Issues and analysis

### Issue 1: Whether the application for initiating the Insolvency Resolution Process against the personal …

**Ratio:** An application for initiating the Insolvency Resolution Process against a personal

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**Reasoning:** The applicant, UCO Bank, provided admissible evidence demonstrating that the personal

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**Interpretation:** The court interpreted **section 95(1)** of the IBC, 2016, along with **rule

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**Application:** Given the evidence of default and the personal guarantee executed by Ashok

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** UCO B…
- **Respondents:** Swati Mining…; Ashok Kumar…
- **Advocates:** For the applicant:…; For the respondent…

## Timeline

- **August 26, 2004 — Initial Credit…**: UCO Bank granted credit facilities, including Export Packing Credit (EPC) for Rs. 1.75…
- **March 28, 2007 — Adhoc Cash Credit…**: Adhoc cash credit facility was enhanced from Rs. 2 crores to Rs. 2.25 crores, and the 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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