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

> NCLT judgment dated 2024-06-12. Citation: TCN-2024-NCLT-01173. The application has been filed by the Personal Guarantor to the Corporate Debtor Rainbow Papers…

- **Court:** NCLT
- **Order date:** 12 Jun 2024
- **Citation:** TCN-2024-NCLT-01173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajay-radheshyam-goenka-vs-union-bank-of-india-others-7274b03a

## Summary

### Background

The application has been filed by the Personal Guarantor to the Corporate Debtor Rainbow Papers Ltd through RP Janak Jagjivan Shah under Section 94 of IBC, 2016. An affidavit dated 13.05.2024 has been filed by the applicant in compliance with Sec 94(4) and Sec 94(5) of IBC 2016. The application is filed through a Resolution Professional. As per circular No. IBBI/PR/2024/5 dated 3 Feb 2024, an amendment has been brought in the Regulations 2019(Insolvency Resolution Process for Personal Guarantors to corporate debtor) whereby it removes 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

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## 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. Union Bank of India & Others are the respondents. The application was filed through a Resolution Professional. An amendment to the Regulations 2019 allows the same Insolvency Professional to be appointed for both the corporate debtor and the personal guarantor. The court appointed Mr. Ramchandra Dallaram Choudhary as the Resolution Professional for the personal guarantor. The Resolution Professional is required to serve a notice on the personal guarantor and examine the application as per Section 97 of IBC, 2016, and file a report recommending approval or rejection within 10 days as per Section 99 of

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## Issues and analysis

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

**Ratio:** Section 94 of the IBC, 2016 allows a personal guarantor to a corporate debtor to initiate

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**Reasoning:** The court considered the application filed by the personal guarantor under Section 94 of

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**Interpretation:** Section 94 provides a mechanism for personal guarantors to initiate insolvency

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**Application:** The court found the application

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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, amending Regulations 2019 regarding appointment of…
- **2024-05-13 — Affidavit…**: An affidavit dated 13.05.2024 was filed by the applicant in compliance of Sec 94(4) and…

## 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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