# In the matter of Abhyudaya Co. Op. Bank Ltd. vs. Kunal Gopichand Chavan

> NCLT judgment dated 2024-11-25. Citation: TCN-2024-NCLT-00177. Abhyudaya Co-Op Bank Limited filed a Company Petition under Section 95 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 25 Nov 2024
- **Citation:** TCN-2024-NCLT-00177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhyudaya-co-op-bank-ltd-vs-kunal-gopichand-chavan-5863b689

## Summary

### Background

Abhyudaya Co-Op Bank Limited filed a Company Petition under Section 95 of the Insolvency & 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, seeking to initiate Personal Insolvency Resolution Process (CIRP) against Mr. Kunal Gopichand Chavan, the Personal Guarantor. The Financial Creditor presented a deed of guarantee dated 2013-12-05 executed by the Personal Guarantor and a copy of the Demand Notice (Form B) dated 2024-06-29, which was successfully delivered to the Personal Guarantor on 2024-07-04.

## Facts

Abhyudaya Co-Op Bank Limited, the Financial Creditor, filed a petition under Section 95 of the Insolvency & Bankruptcy Code, 2016, to initiate Personal Insolvency Resolution Process (CIRP) against Mr. Kunal Gopichand Chavan, the Personal Guarantor. The petition was filed based on a deed of guarantee dated 2013-12-05 executed by Mr. Chavan. A Demand Notice (Form B) dated 2024-06-29 was served on Mr. Chavan on 2024-07-04. The NCLT bench appointed Mr. Manish Lalji Dawada as the Resolution Professional and directed the Financial Creditor to pay an advance of Rs. 2,00,000 to the RP. An interim moratorium was declared from the date of filing the application.

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 95 of the Insolvency and …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The bench examined the application and the documents submitted by the Financial Creditor,

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**Interpretation:** Section 95 provides a mechanism for financial creditors to recover debts from

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**Application:** The bench found that the Financial Creditor had complied with the requirements

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Abhyudaya Co. Op.…; Abhyudaya Co-Op…
- **Respondents:** Kunal Gopichand…
- **Advocates:** Maulik Ch…; Amar Kh…; +2 more

## Timeline

- **2013-12-05 — Deed of Gua…**: Deed of guarantee executed…
- **2024-06-29 — Demand N…**: Demand Notice (Form B) issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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