# In the matter of Union Bank of India (UK) Ltd Vs. Gaurav Jain CP (IB)-991 (ND)-2020

> NCLT judgment dated 2020-10-12. Citation: TCN-2020-NCLT-00412. The case involves an application filed by Union Bank of India (UK) Limited under Section 95(1)…

- **Court:** NCLT
- **Order date:** 12 Oct 2020
- **Citation:** TCN-2020-NCLT-00412
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/union-bank-of-india-uk-ltd-vs-gaurav-jain-cp-a3229815

## Summary

### Background

The case involves an application filed by Union Bank of India (UK) Limited under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7(2) of the IB (Application to Adjudicating Authority for IRP for Personal Guarantors to CD) Rules, 2019, to initiate the Insolvency Resolution Process (IRP) against the personal guarantor, Mr. Gaurav Jain. The applicant, Union Bank of India (UK) Limited, extended a USD denominated term loan to DCP India Private Limited, for which Mr. Gaurav Jain provided a personal guarantee. DCP defaulted on the loan repayment, leading to the application for initiating IRP against the personal guarantor.

## Facts

Union Bank of India (UK) Limited (the Applicant) extended a USD denominated term loan to DCP India Private Limited. The loan amount was US$ 5,000,000. A Facility Agreement was executed on 2016-12-14 between the Applicant and DCP. Mr. Gaurav Jain, one of the directors of DCP, provided a personal guarantee on 2016-12-14 in favor of the Applicant to secure the repayment of the loan. DCP was obligated to repay the loan in 12 installments, with the first installment due in December 2017 and the last in March 2023. An addendum was executed on 2016-12-24, amending the repayment schedule. DCP and Mr. Gaurav Jain failed to repay the term loan as agreed. The Applicant issued a demand notice on 2020-03-31 under Rule 7(1) of the IB Rules, 2019, but received no response. The

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## Issues and analysis

### Issue 1: Whether the application filed by Union Bank of India (UK) Limited under Section 95(1) of the IBC, …

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

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**Reasoning:** The court considered the application and the evidence presented by the applicant, which

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**Interpretation:** Section 95(1) of the IBC, 2016, provides a mechanism for creditors to initiate

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**Application:** The court applied Section 95(1) of the IBC, 2016, to the facts of the case,

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narendra Kumar…
- **Appellants:** Union Bank of…
- **Respondents:** DCP India Private…; Gaurav…

## Timeline

- **2016-12-14 — Facility Ag…**: Facility Agreement executed between Union Bank of India (UK) Limited and DCP India…
- **2016-12-14 — Personal Gu…**: Mr. Gaurav Jain executed a personal guarantee in favor of Union Bank of India (UK)…

## 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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