# 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-01042. 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-01042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/lic-hfl-trustee-company-private-limited-another-vs-b-nirmal-kumar-9a203f6e

## 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 in redeeming Optionally Fully Convertible Debentures (OFCDs) by JBM Homes Private Limited.

The Financial Creditors claimed that Mr.B. Nirmal Kumar, as the Personal Guarantor, is liable to pay Rs.98,64,37,800.00/-.

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

…

## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** The limitation period for the claim is three years from the date the cause of action

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**Reasoning:** The Tribunal considered the submissions of the parties and reviewed the provisions of the

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**Interpretation:** The cause of action arose when the debentures were not redeemed by the extended

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**Application:** The application was filed on 29.09.2021, which is within the three-year

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## Parties

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

## Timeline

- **2015-03-23 — Securities Subscription and Securities Holder's…**: Agreement dated…
- **2018-09-26 — Default in redeeming…**: The Corporate Debtor…

## 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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