# In the matter of Abhyudaya Co Op Bank Ltd. vs. Ritadevi Devilal Chapagain

> NCLT judgment dated 2024-11-18. Citation: TCN-2024-NCLT-00216. The case involves a Company Petition filed by Abhyudaya Co-Op Bank Limited, the Financial…

- **Court:** NCLT
- **Order date:** 18 Nov 2024
- **Citation:** TCN-2024-NCLT-00216
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhyudaya-co-op-bank-ltd-vs-ritadevi-devilal-chapagain-9dccb439

## Summary

### Background

The case involves a Company Petition filed by Abhyudaya Co-Op Bank Limited, the Financial Creditor, under Section 95 of the Insolvency & Bankruptcy Code, 2016 (IBC), 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. The petition seeks to initiate a Personal Insolvency Resolution Process (CIRP) against Ritadevi Devilal Chapagain, the Personal Guarantor. The Demand Notice was successfully delivered to the Personal Guarantor.

## Facts

Abhyudaya Co-Op Bank Limited, the Financial Creditor, filed a Company Petition under Section 95 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Personal Insolvency Resolution Process (CIRP) against Ritadevi Devilal Chapagain, the Personal Guarantor. The Demand Notice dated 14.03.2024 was successfully delivered to the Personal Guarantor on 16.03.2024, and a copy of the Petition was served via email on 28.05.2024. The NCLT appointed Mr. Manish Lalji Dawada as the Resolution Professional and directed the Financial Creditor to make an advance payment of Rs. 2,00,000. An interim-moratorium under Section 96(1)(a) of the IBC commenced from the date of filing of the application, staying legal actions against the debtor and preventing creditors from

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## Issues and analysis

### Issue 1: Whether the requirements under Section 95 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 95 of the IBC outlines the conditions for initiating CIRP against a personal

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**Reasoning:** The court considered the submissions of the Financial Creditor's counsel and the

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**Interpretation:** Section 95 is interpreted to ensure that the application for initiating CIRP is

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**Application:** The court applied Section 95 to the facts of the case, noting that the Demand

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Abhyudaya Co. Op.…; Abhyudaya Co-Op…
- **Respondents:** Ritadevi Devilal…

## Timeline

- **2024-03-14 — Demand Noti…**: Demand Notice was issued to…
- **2024-03-16 — Demand Notice…**: Demand Notice was successfully…

## 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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