# In the matter of Amar Baldva, CP (IB) No. 32/94(1)/JPR/2022

> NCLT judgment dated 2023-01-11. Citation: TCN-2023-NCLT-05114. The case pertains to an application filed by Mr. Amar Baldva under Section 94 of the Insolvency…

- **Court:** NCLT
- **Order date:** 11 Jan 2023
- **Citation:** TCN-2023-NCLT-05114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amar-baldva-cp-ib-no-32941jpr2022-6aae82d3

## Summary

### Background

The case pertains to an application filed by Mr. Amar Baldva under Section 94 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Interim Resolution Process (IRP) as a personal guarantor to the corporate debtor, M/s Baldva Textiles Private Limited. The application is for an amount of Rs. 16,73,10,124/- related to credit facilities extended by Punjab National Bank. The Resolution Professional (RP) filed a report recommending the admission of the application, stating that the personal guarantor defaulted on debt repayment, the application concerns debts not excluded under Section 94(3), and the application complies with prescribed procedures.

## Facts

Mr. Amar Baldva, acting as a personal guarantor for M/s Baldva Textiles Private Limited, defaulted on a credit facility of Rs. 16,73,10,124/- extended by Punjab National Bank. He filed an application under Section 94 of the Insolvency and Bankruptcy Code (IBC) seeking initiation of the Interim Resolution Process (IRP). The Resolution Professional (RP) appointed by the Authority recommended the admission of the application, confirming that Mr. Baldva met the requirements under Section 94 of the IBC. Besides the debt to Punjab National Bank, Mr. Baldva also defaulted on payments to Anjana Kogta (Rs. 20,00,000), Hanuman Kumar (Rs. 5,00,000), Kamla Devi Kogta (Rs. 17,00,000), and Manju Porwal (Rs. 5,50,000), all unsecured loans. The RP's report indicated that the

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## Issues and analysis

### Issue 1: Whether the application filed by Mr. Amar Baldva under Section 94 of the IBC for initiating the …

**Ratio:** Section 94 of the IBC allows a debtor to apply for initiation of insolvency resolution

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**Reasoning:** The Resolution Professional's report confirmed that Mr. Baldva met the requirements under

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**Interpretation:** Section 94 of the IBC provides a mechanism for debtors to initiate insolvency

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**Application:** Based on the RP's report and compliance with Section 94, the Adjudicating

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Amar Ba…
- **Respondents:** M/s Baldva…

## Timeline

- **2022-05-30 — Appointment of…**: Mr. Vishnu Upadhyay was appointed as the Resolution Professional vide order dated…
- **2023-01-11 — Order Pron…**: The order was pronounced on 11.01.2023, admitting the application and initiating the…

## 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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