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

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03036. 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-03036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/axis-bank-ltd-vs-govindbhai-veljibhai-patel-c0ee4ba6

## 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. 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 to the Personal Guarantor on 18.04.2023. The date of default is mentioned in the application as 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 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 to the Personal Guarantor on 18.04.2023. The date of default is mentioned in the application as 17.06.2022. The Resolution Professional is required to examine the application as set out in Section 97(6) of IBC, 2016 and file a report recommending for approval or rejection of the application within a period of 10

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## Issues and analysis

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

**Ratio:** Section 95 of the IBC, 2016 allows a creditor to file an application for initiating the

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**Reasoning:** The court considered the application filed by the creditor, Axis Bank Limited, against

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

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**Application:** The court applied Section 95 to the facts of the case, where Axis Bank Limited,

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Axis Bank L…
- **Respondents:** Ambition Mica…; Govindbhai…

## 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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