# Mrs. V. Lakshmi vs. Tamilnad Mercantile Bank Limited & Mr. M. Ramachandran

> NCLT judgment dated 2026-09-15. Citation: TCN-2026-NCLT-01148. Mrs. V. Lakshmi, a personal guarantor for Vahanashree Marketing Services Private Limited, Shree…

- **Court:** NCLT
- **Order date:** 15 Sept 2026
- **Citation:** TCN-2026-NCLT-01148
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/v-lakshmi-sct6q

## Summary

### Background

Mrs. V. Lakshmi, a personal guarantor for Vahanashree Marketing Services Private Limited, Shree Varsha Papers, and Valarthiru Print Packs, filed an application under Section 94(1) of the IBC, 2016, to initiate her insolvency resolution process. Debts are owed to Tamilnad Mercantile Bank Limited (TMB) and Mr. M. Ramachandran. TMB had already initiated measures under the SARFAESI Act, including the sale of a mortgaged property, which Mrs. V. Lakshmi had unsuccessfully challenged.

## Facts

Mrs. V. Lakshmi, a personal guarantor, filed an application under Section 94(1) of the IBC, 2016, to initiate her insolvency resolution process.

The application is filed in respect of Mrs. V. Lakshmi's role as a personal guarantor for Vahanashree Marketing Services Private Limited (Corporate Debtor).

Mrs. V. Lakshmi also furnished personal guarantees for credit facilities availed by M/s. Shree Varsha Papers and M/s. Valarthiru Print Packs from Tamilnad Mercantile Bank Limited (TMB).

The total default amount to TMB is Rs. 1,13,52,633.58/- and Rs. 53,75,428/-.

The dates of default are 14.11.2023 and 02.01.2025.

TMB invoked personal guarantees by issuing demand notices dated 21.11.2023, 31.01.2024, and 04.03.2024 under Section 13(2) of the SARFAESI Act, 2002.

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## Issues and analysis

### Issue 1: Whether the application filed by Mrs. V. Lakshmi under Section 94(1) of the IBC, 2016, for …

**Ratio:** An application under Section 94/95 of IBC can be filed independently by a personal

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**Reasoning:** The Tribunal observed that the default of the Corporate Debtor was below the threshold

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**Interpretation:** Section 94 of the IBC allows a personal guarantor to initiate insolvency

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**Application:** Mrs. V. Lakshmi's application, filed as a personal guarantor, is maintainable

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## Parties

- **Judges:** Shri. JYOTI KUMAR…; SHRI. RAVICHANDRAN…
- **Appellants:** V. Lak…; CA. S. P…
- **Respondents:** Vahanashree…; Tamilnad Mercantil…; +1 more
- **Other parties:** DIVISION BENCH…; Prabh…
- **Advocates:** Aishw…; A.G. Sathyanarayan…; +4 more

## Timeline

- **2023-11-14 — Date of Default &…**: One of the dates of default occurred; Secured debt owed by Shree Varsha Papers was…
- **2023-11-21 — Demand Notice…**: Tamilnad Mercantile Bank Limited (TMB) issued a demand notice under Section 13(2) of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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