# In the matter of Aditya Birla Finance Limited vs. Vijayalakshmi Subburaj

> NCLT judgment dated 2024-02-19. Citation: TCN-2024-NCLT-02535. Aditya Birla Finance Limited filed an application under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 19 Feb 2024
- **Citation:** TCN-2024-NCLT-02535
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aditya-birla-finance-limited-vs-vijayalakshmi-subburaj-93f92dc1

## Summary

### Background

Aditya Birla Finance Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against the personal guarantor, Mrs. Vijayalakshmi Subburaj. Mrs. Vijayalakshmi Subburaj is the personal guarantor of the Corporate Debtor against whom CIRP was initiated vide an order dated 29.08.2018. Subsequently, liquidation of the Corporate Debtor was ordered on 12.06.2019.

## Facts

Aditya Birla Finance Limited (the Applicant) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mrs. Vijayalakshmi Subburaj (the Respondent), who is the personal guarantor of a Corporate Debtor. The Corporate Debtor had taken credit facilities from the Applicant, and the Respondent provided a personal guarantee for the loan. The Corporate Debtor defaulted on the debt, leading the Applicant to initiate CIRP against the Corporate Debtor. CIRP was initiated against the Corporate Debtor on 29.08.2018, and subsequently, liquidation was ordered on 12.06.2019. The amount of debt and default is Rs.3,65,28,644, and the date of default is 03.11.2017. The Applicant has placed the Deed of

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## Issues and analysis

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

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

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**Reasoning:** The court considered the averments made in the application and the documents filed,

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**Interpretation:** The Supreme Court has clarified that no judicial adjudication is involved at

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**Application:** The Applicant, Aditya Birla Finance Limited, has filed the application under

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** ADITYA BIRLA…
- **Respondents:** Vijayalakshmi…

## Timeline

- **2018-08-29 — CIRP Init…**: CIRP was initiated…
- **2019-06-12 — Liquidation…**: Liquidation of the…

## 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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