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

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03022. 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-03022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/axis-bank-ltd-vs-prahalad-veljibhai-patel-02bec83f

## 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 Prahalad Veljibhai Patel, the personal guarantor of Ambition Mica Limited. The personal guarantor executed a deed of guarantee on March 30, 2018, and 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 April 18, 2023. The date of default mentioned in the application is June 17, 2022.

## Facts

Axis Bank Limited filed an application under Section 95 of the IBC, 2016 against Prahalad Veljibhai Patel, the personal guarantor of Ambition Mica Limited. The guarantor executed a deed of guarantee on March 30, 2018. The amount of default is Rs. 23,55,97,901/-. A demand notice was issued to the guarantor on April 18, 2023, under Rule 7(1) of the relevant rules. The date of default is mentioned as June 17, 2022. The application has been admitted, and a Resolution Professional has been appointed to examine the application and submit a report.

## 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 initiate insolvency proceedings against

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**Reasoning:** The court considered the application and the fact that a demand notice was served to the

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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 initial requirements

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## Parties

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

## Timeline

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

## 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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