# In the matter of The South Indian Bank vs. K C Mohanan

> NCLT judgment dated 2025-10-10. Citation: TCN-2025-NCLT-01571. The South Indian Bank filed an application under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Oct 2025
- **Citation:** TCN-2025-NCLT-01571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/the-south-indian-bank-vs-k-c-mohanan-417a6ba5

## Summary

### Background

The South Indian Bank filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the rejection of C.P. No. 109 of 2023 filed by K.C. Mohanan, the Respondent/Personal Guarantor, under Section 94 of the IBC.

## Facts

The South Indian Bank provided financial facilities to M/s We Two Engineering Private Limited, where K.C. Mohanan was a Director and Personal Guarantor.

The facilities included overdraft, cash credit, term loans, letters of credit, bank guarantees, WCTLs, FITL, and ECLGS loans.

The accounts of the Corporate Debtor and guarantors were classified as Non-Performing Assets (NPA) on 16.05.2022.

SARFAESI proceedings were initiated, and a demand notice dated 14.07.2022 was issued under Section 13(2) of the SARFAESI Act.

K.C. Mohanan invoked Section 94(1) of the IBC by filing C.P. No. 109 of 2023, thereby obtaining the statutory moratorium.

The Applicant Bank contended that the said petition is mala fide, filed only to thwart the recovery measures lawfully initiated under SARFAESI.

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Respondent under Section 94 of the IBC was a mala fide attempt to …

**Ratio:** The Tribunal held that the petition was filed with mala fide intent to misuse the

…

**Reasoning:** The Respondent had been enjoying the protection of moratorium for more than two years

…

**Interpretation:** Section 94 of the IBC cannot be used to stall recovery proceedings initiated

…

**Application:** The Tribunal applied the principle to the present case, where the Respondent's

…

## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** The South Indian…
- **Respondents:** M/s We Two…; K.C. Mo…
- **Advocates:** M/s. Ramalingam &…; E. Om Pr…

## Timeline

- **2022-05-16 — NPA Classif…**: Accounts of the Corporate Debtor and guarantors were classified as Non-Performing Assets…
- **2022-07-14 — SARFAESI…**: Demand notice issued under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chennai/the-south-indian-bank-vs-k-c-mohanan-417a6ba5