# In the matter of Bank of Baroda Vs. Adarsh Pal Singh, CP (IB) No. 251/ND/2022

> NCLT judgment dated 2022-07-01. Citation: TCN-2022-NCLT-01940. Bank of Baroda filed an application under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Jul 2022
- **Citation:** TCN-2022-NCLT-01940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-adarsh-pal-singh-cp-19753a25

## Summary

### Background

Bank of Baroda filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Adarsh Pal Singh, the Personal Guarantor, concerning debt disbursed to M/s. Upal Buildtech Pvt. Ltd., the Corporate Debtor. The application was filed on 2022-03-11.

## Facts

Bank of Baroda sanctioned a term loan of Rs 7,45,00,000 to UPAL Buildtech Private Limited on 2017-04-10, with Mr. Adarsh Pal Singh acting as the Personal Guarantor. The Corporate Debtor filed Form CHG-1 for the registration of charge with the Registrar of Companies, Kanpur. Subsequently, another term loan of Rs 2,50,00,000 was sanctioned on 2017-07-12, bringing the total loan facility to Rs 9,95,00,000. The Corporate Debtor defaulted on payments, leading to the account being classified as NPA on 2021-03-31. The bank issued notices under Section 13(2) of the SARFAESI Act on 2021-04-05 and a possession notice under Section 13(4) on 2021-09-03. As of 2021-11-26, the total debt payable by the Personal Guarantor was Rs 9,82,88,255.17, including principal and interest. A

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## Issues and analysis

### Issue 1: Whether the application filed by Bank of Baroda under Section 95 of the Insolvency and Bankruptcy …

**Ratio:** The application is maintainable if it meets the requirements of Section 95 of the IBC and

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**Reasoning:** The Tribunal found that the application was complete in all respects, the Demand Notice

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**Interpretation:** Section 95 of the IBC allows a financial creditor to initiate insolvency

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**Application:** The Tribunal applied Section 95 to the facts, noting the default by the

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Bank of B…
- **Respondents:** Upal Buildtech…; ADARSH PAL…
- **Advocates:** Sought…; Manoj K…; +3 more

## Timeline

- **2017-04-10 — Term Loan San…**: Bank of Baroda sanctioned a term loan of Rs…
- **2017-07-12 — Second Term Loan…**: Bank of Baroda sanctioned another term loan of Rs 2,50,00,000 to UPAL Buildtech Private…

## 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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