# In the matter of Union Bank of India vs. Kapil Wadhawan

> Read the full IBC case summary for In the matter of Union Bank of India vs. Kapil Wadhawan. NCLT judgment dated 2025-08-14. Citation: TCN-2025-NCLT-01294.

- **Court:** NCLT
- **Order date:** 14 Aug 2025
- **Citation:** TCN-2025-NCLT-01294
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/union-bank-of-india-vs-kapil-wadhawan-e4bca089

## Summary

### Background

The petition was filed by Union Bank of India, a financial creditor, under Section 123 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking to initiate bankruptcy proceedings against Mr. Kapil Wadhawan, a personal guarantor.

## Facts

Union Bank of India, along with Andhra Bank and Corporation Bank (which later amalgamated into Union Bank), extended various credit facilities to Dewan Housing Finance Corporation Limited (DHFL/Principal Borrower) through several DHFL Facility Agreements, including a Consortium Agreement dated July 24, 2010, and subsequent supplemental agreements. The total credit facilities exceeded Rs. 50,656.84 Crores.

Mr. Kapil Wadhawan, the respondent and personal guarantor, executed a Joint Deed of Guarantee on June 22, 2019, along with another guarantor, in favor of Catalyst Trusteeship Limited, acting as security trustee for the consortium of lenders. This guarantee unconditionally and irrevocably secured the principal borrower's obligations to the banks.

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## Issues and analysis

### Issue 1: Whether the present petition for initiation of bankruptcy process against the Personal Guarantor is…

**Ratio:** An application for bankruptcy against a personal guarantor is maintainable under Section…

**Reasoning:** The Adjudicating Authority had previously rejected the repayment plan under Section 114…

**Interpretation:** The court interpreted Sections 114, 115(2), and 121(2) of the Code to mean that…

**Application:** Given that the repayment plan was rejected on January 2, 2025, and the present…

## Parties

- **Judges:** LAKSHMI G…; Shri. Hariharan…
- **Advocates:** For the Petitioner…

## Timeline

- **July 24, 2010 — Consortium Ag…**: First Consortium Agreement entered between…
- **June 22, 2019 — Joint Deed of…**: Respondent executed a Joint Deed of Guarantee in favor of Catalyst Trusteeship Limited…

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