# In the matter of UCO Bank Vs. Swaran Kumar Kejriwal, CP (IB)/33 (KB)/2021

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00602. 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-00602
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uco-bank-vs-swaran-kumar-kejriwal-cp-90b78960

## 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. Sarwan Kumar Kejriwal, a personal guarantor to Swati Mining Private Limited (Corporate Debtor). UCO Bank had granted credit facilities to Swati International (predecessor of Swati Mining) in 2004, which were later taken over by Swati Mining in 2008. The Corporate Debtor defaulted on payments, leading to the account being declared a Non-Performing Asset on 30/06/2019. The Corporate Debtor was admitted into CIRP on

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## Facts

UCO Bank extended credit facilities to Swati International, a partnership firm, in 2004. These facilities were later taken over by Swati Mining Private Limited (Corporate Debtor) in 2008. Mr. Sarwan Kumar Kejriwal, along with others, provided personal guarantees for these credit facilities. The Corporate Debtor defaulted on its repayment obligations, leading to its account being classified as a Non-Performing Asset on June 30, 2019. Consequently, the Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on July 8, 2019. The outstanding amount due from the Corporate Debtor was Rs. 6,89,92,729.09 as of July 8, 2019. UCO Bank, as the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to

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## Issues and analysis

### Issue 1: Whether the application filed by UCO Bank under Section 95(1) of the IBC, 2016, for initiating the …

**Ratio:** Section 95(1) of the IBC, 2016, allows a creditor to file an application for initiating

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**Reasoning:** The court reasoned that the applicant, UCO Bank, had demonstrated that the Corporate

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**Interpretation:** Section 95(1) of the IBC, 2016, is interpreted to mean that when a corporate

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**Application:** In this case, the Corporate Debtor, Swati Mining Private Limited, defaulted on

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## Parties

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

## Timeline

- **2004-08-26 — Credit Facilities…**: UCO Bank granted credit facilities to Swati International for Export Packing Credit (EPC)…
- **2006-01-01 — Adhoc Cash Credit…**: The Bank sanctioned an adhoc cash…

## 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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