# In the matter of LIC HFL Trustee Company Private Limited & Another vs. B. Nirmal Kumar

> NCLT judgment dated 2025-03-21. Citation: TCN-2025-NCLT-01043. The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Mar 2025
- **Citation:** TCN-2025-NCLT-01043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/lic-hfl-trustee-company-private-limited-another-vs-b-nirmal-kumar-0ffafc1c

## Summary

### Background

The case pertains to an application filed 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 Debtors) Rules, 2019, by LIC HFL Trustee Private Company Private Limited and Vistra ITCL (India) Limited, seeking to initiate insolvency resolution process against Mr.B. Nirmal Kumar, the Personal Guarantor of JBM Homes Private Limited.

## Facts

LIC HFL Trustee Company Private Limited and Vistra ITCL (India) Limited filed an application under Section 95(1) of the IBC against Mr.B. Nirmal Kumar, the Personal Guarantor of JBM Homes Private Limited.

The application was filed due to a default on optionally fully convertible debentures (OFCDs) issued by JBM Homes Private Limited.

The Financial Creditors claimed that the PG/ Respondent are liable to pay a sum of Rs.98,64,37,800.00/- covering principal amount together with interest as on 07.09.2021

The Respondent/Personal Guarantor raised objections regarding the application's maintainability, citing insufficient details, limitation issues, and the proposed Resolution Professional's disqualification.

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC is maintainable against the Personal …

**Ratio:** Yes, the application is

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**Reasoning:** The Tribunal found that the application met the requirements of Section 95 of the IBC, as

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**Interpretation:** Section 95 of the IBC allows for the initiation of insolvency resolution

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**Application:** The Tribunal applied Section 95 of the IBC to the facts of the case and found

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** LIC HFL Trustee…; Vistra ITCL…; +4 more
- **Respondents:** JBM Homes Private…; Mr.B.Nirmal…
- **Other parties:** Geetha Sr…; Mr.K.J.…; +1 more
- **Advocates:** Avinash Krishnan…

## Timeline

- **2015-03-23 — Securities Subscription and Securities Holder's…**: Securities subscription and securities…
- **2018-09-26 — Default in redeeming…**: The CD defaulted in…

## 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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