# In the matter of Amrit Kumar Patel, CP (IB) No. 773/ND/2019

> NCLT judgment dated 2022-05-13. Citation: TCN-2022-NCLT-02745. The case involves an application filed by Mr. Amrit Kumar Patel under Section 94 read with…

- **Court:** NCLT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLT-02745
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amrit-kumar-patel-cp-ib-no-773nd2019-de4d87d0

## Summary

### Background

The case involves an application filed by Mr. Amrit Kumar Patel under Section 94 read with Section 122 of the Insolvency and Bankruptcy Code, 2016, and Rule 7 of the Insolvency and Bankruptcy Rules, 2019, seeking initiation of Insolvency Resolution Process against himself as a personal guarantor to a corporate debtor, Patel Wood Products Limited. The corporate debtor had approached ICICI Bank Limited in 2007 for loan and credit facilities, which were sanctioned. However, the corporate debtor defaulted, leading to the account being classified as NPA on 30.04.2013. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued. The loan account was later assigned to Phoenix ARC Private Limited. DRT-I decided OA 235/2014 against the corporate debtor and personal

…

## Facts

In 2007, Patel Wood Products Limited (the corporate debtor) approached ICICI Bank Limited for loan and credit facilities, which were sanctioned. The corporate debtor defaulted on its financial obligations, leading to its account being classified as NPA on 2013-04-30. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued to the corporate debtor and personal guarantors. OA No. 235/2014 was filed before DRT-I, Delhi, against the corporate debtor and personal guarantors. The loan account of the corporate debtor was assigned to Phoenix ARC Private Limited. On 2019-05-31, DRT-I decided OA 235/2014 against the corporate debtor and personal guarantors for recovery of Rs. 35,83,00,000/-. Mr. Amrit Kumar Patel, a personal guarantor, filed an application under

…

## Issues and analysis

### Issue 1: Whether the application filed by Mr. Amrit Kumar Patel under Section 94 of the Insolvency and …

**Ratio:** The ratio is based on the principle that the Insolvency and Bankruptcy Code should not be

…

**Reasoning:** The Tribunal reasoned that the respondents had demonstrated that recovery proceedings

…

**Interpretation:** The interpretation is that the IBC should be used for genuine insolvency

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** Amrit Kumar…
- **Respondents:** Patel Wood…; Phoenix Arc…

## Timeline

- **2007-01-01 — Loan Appli…**: Patel Wood Products Limited approached ICICI…
- **2013-04-30 — Account Classified as…**: The account of Patel Wood Products…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amrit-kumar-patel-cp-ib-no-773nd2019-de4d87d0