# In the matter of Bal Krishan, CP (IB) No. 265/Chd/Pb/2021

> NCLT judgment dated 2022-07-25. Citation: TCN-2022-NCLT-01585. The case pertains to an application filed by Bal Krishan, a personal guarantor to M/s. Swati…

- **Court:** NCLT
- **Order date:** 25 Jul 2022
- **Citation:** TCN-2022-NCLT-01585
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bal-krishan-cp-ib-no-265chdpb2021-5ee814ed

## Summary

### Background

The case pertains to an application filed by Bal Krishan, a personal guarantor to M/s. Swati Cast & Forging Private Limited, under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Insolvency Resolution Process (IRP). Bal Krishan has extended personal guarantees to financial creditor Punjab & Sind Bank and other lenders. The personal guarantee has been extended for the loan facilities availed by the corporate debtor. The applicant is indebted to Punjab and Sind Bank for Rs. 18,33,91,655.46/-. The application was filed in the prescribed proforma, with compliance affidavit incorporated vide Diary No.01378/2 dated 15.03.2022, stating that the applicant is not an undischarged bankrupt or undergoing any insolvency resolution

…

## Facts

Bal Krishan, a personal guarantor to M/s. Swati Cast & Forging Private Limited, filed an application under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Insolvency Resolution Process (IRP). Bal Krishan has extended personal guarantees to financial creditor Punjab & Sind Bank and other lenders. The personal guarantee has been extended for the loan facilities availed by the corporate debtor. The applicant is indebted to Punjab and Sind Bank for Rs. 18,33,91,655.46/-. The application was filed in the prescribed proforma, with compliance affidavit incorporated vide Diary No.01378/2 dated 15.03.2022, stating that the applicant is not an undischarged bankrupt or undergoing any insolvency resolution process. The Adjudicating

…

## Issues and analysis

### Issue 1: Whether the application filed by Bal Krishan, the personal guarantor, under Section 94 of the …

**Ratio:** Section 94 of the IBC, 2016, provides for the initiation of the insolvency resolution

…

**Reasoning:** The Adjudicating Authority considered the application filed by Bal Krishan, the personal

…

**Interpretation:** Section 94 allows a personal guarantor to initiate insolvency proceedings if

…

**Application:** The Adjudicating Authority found that Bal Krishan, as a personal guarantor to

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Bal Kri…
- **Respondents:** Swati Cast &…

## Timeline

- **2022-03-07 — Compliance Af…**: Compliance affidavit pursuant to order dated 07.03.2022 has been incorporated vide Diary…
- **2022-03-15 — Compliance Affidavit…**: Compliance affidavit incorporated vide…

## 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/bal-krishan-cp-ib-no-265chdpb2021-5ee814ed