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

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03010. 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-03010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/axis-bank-ltd-vs-rameshkumar-veljibhai-patel-caaadf9c

## 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 Rameshkumar Veljibhai Patel, the personal guarantor of Ambition Mica Limited. The personal guarantor executed a deed of guarantee on March 30, 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 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 Rameshkumar Veljibhai Patel, who is the personal guarantor of Ambition Mica Limited. The personal guarantor had executed a deed of guarantee on March 30, 2018. The amount of default is Rs. 23,55,97,901/-. The applicant issued a demand notice to the personal guarantor on April 18, 2023, under Rule 7(1) of the relevant rules. The date of default mentioned in the application is June 17, 2022. The NCLT admitted the application and appointed Mr. Rathin Amishbhai Majmudar as the Resolution Professional to examine the application and submit 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 resolution process

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**Reasoning:** The court considered the application and the documents filed by the applicant, including

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**Interpretation:** Section 95 of the IBC, 2016 provides a mechanism for creditors to recover their

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**Application:** The court applied the provisions of Section 95 of the IBC, 2016 to the facts of

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## Parties

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

## 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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