# In the matter of Axis Bank Ltd. vs. Govindbhai Veljibhai Patel

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03018. This is an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016…

- **Court:** NCLT
- **Order date:** 17 Jan 2024
- **Citation:** TCN-2024-NCLT-03018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/axis-bank-ltd-vs-govindbhai-veljibhai-patel-06de6703

## Summary

### Background

This is an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016 by Axis Bank Limited, the creditor, against Govindbhai Veljibhai Patel, the Personal Guarantor of Ambition Mica Limited. The Personal Guarantor executed a deed of guarantee on 30.03.2018, and the amount of default is Rs. 23,55,97,901/-. The applicant issued a demand notice under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantor to Corporate Debtor) Rules, 2019 on 18.04.2023. The date of default mentioned in the application is 17.06.2022.

## Facts

Axis Bank Limited filed an application under Section 95 of the IBC, 2016, against Govindbhai Veljibhai Patel, who is the Personal Guarantor of Ambition Mica Limited. The Personal Guarantor executed a deed of guarantee on 30.03.2018. The amount of default is Rs. 23,55,97,901/-. The applicant served a demand notice under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantor to Corporate Debtor) Rules, 2019 on 18.04.2023. The date of default mentioned in the application is 17.06.2022. The creditor raised certain defenses, which will be considered after the Resolution Professional files a report.

## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the IBC, 2016, is maintainable against the …

**Ratio:** Section 95 of the IBC, 2016 allows a creditor to initiate insolvency proceedings against

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**Reasoning:** The court considered the application filed under Section 95 of the IBC, 2016, and noted

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The court admitted the application, indicating that the requirements of Section

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Axis Bank L…
- **Respondents:** Ambition Mica…; Govindbhai…
- **Advocates:** Ishan J…; Hem B…; +1 more

## Timeline

- **2018-03-30 — Deed of Guarantee…**: The Personal Guarantor…
- **2022-06-17 — Date of D…**: The date of default is…

## 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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