# In the matter of Ajay Radheshyam Goenka vs. Union Bank of India & Others

> NCLT judgment dated 2024-06-12. Citation: TCN-2024-NCLT-01177. This case involves an application filed by the Personal Guarantor to the Corporate Debtor,…

- **Court:** NCLT
- **Order date:** 12 Jun 2024
- **Citation:** TCN-2024-NCLT-01177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajay-radheshyam-goenka-vs-union-bank-of-india-others-3041cef7

## Summary

### Background

This case involves an application filed by the Personal Guarantor to the Corporate Debtor, Rainbow Papers Ltd, through Resolution Professional Janak Jagjivan Shah under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016. The applicant has also filed an affidavit dated 13.05.2024 in compliance with Sections 94(4) and 94(5) of the IBC, 2016. The court is considering defenses raised by creditors and an amendment to regulations regarding the appointment of the same Insolvency Professional for both the corporate debtor and personal guarantor.

## Facts

Ajay Radheshyam Goenka, representing PG Rainbow Papers Ltd, filed an application under Section 94 of the IBC, 2016, as a Personal Guarantor to the Corporate Debtor. An affidavit dated 13.05.2024 was filed in compliance with Sec 94(4) and Sec 94(5) of IBC 2016. Union Bank of India & Others are the respondents. The application is filed through a Resolution Professional. An amendment to Regulations 2019 (Insolvency Resolution Process for Personal Guarantors to corporate debtor) has been brought in, removing the restriction in appointing the same Insolvency Professional in both the corporate process as well as insolvency and bankruptcy proceeding of the PGs to the corporate debtor's for better harmonization and effective coordination of both the process. Mr. Ramchandra

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## Issues and analysis

### Issue 1: Whether the application filed by the Personal Guarantor under Section 94 of the IBC, 2016, should …

**Ratio:** Section 94 of the IBC, 2016, provides the framework for individuals to initiate

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**Reasoning:** The court's decision will be based on the Resolution Professional's report, which will

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**Interpretation:** Section 94 allows a personal guarantor to initiate insolvency proceedings. The

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**Application:** The Resolution Professional must examine the application, serve notices, and

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Ajay Radheshyam…
- **Respondents:** PG Rainbow Papers…; Union Bank of…

## Timeline

- **2024-02-03 — IBBI Cir…**: Circular No. IBBI/PR/2024/5 issued, bringing an amendment in the Regulations 2019…
- **2024-05-13 — Affidavit…**: An affidavit dated 13.05.2024 filed by the applicant in compliance with Sec 94(4) and Sec…

## Legal provisions

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

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