# In the matter of Bank of Baroda Vs. Avinash Chandra Gupta, CP (IB)/298(KB)/2021

> NCLT judgment dated 2022-06-15. Citation: TCN-2022-NCLT-02230. The case pertains to an application filed by Bank of Baroda under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 15 Jun 2022
- **Citation:** TCN-2022-NCLT-02230
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-avinash-chandra-gupta-cp-67513814

## Summary

### Background

The case pertains to an application filed by Bank of Baroda under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking to initiate the Insolvency Resolution Process against Mr. Avinash Chandra Gupta, the personal guarantor for Shri Badrinarain Alloys and Steels Limited (SBASL). SBASL had approached the applicant for credit facilities, which were extended from time to time. A deed of guarantee was executed by the respondent, Avinash Chandra Gupta, for the repayment of loans granted to SBASL. SBASL defaulted on the repayment, leading to the loan accounts being classified as

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## Facts

Bank of Baroda extended credit facilities to Shri Badrinarain Alloys and Steels Limited (SBASL). Mr. Avinash Chandra Gupta provided personal guarantees for the credit facilities. SBASL defaulted on repayments, leading to the loan accounts being classified as Non-Performing Assets (NPA) on 15/08/2016, with effect from 01/05/2013 (cutoff date of CDR restructure). Bank of Baroda filed an original application (O.A. No. 41 of 2019) against SBASL and the guarantors before the Debts Recovery Tribunal-I, Kolkata. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued on 09/10/2019. SBASL was admitted into Corporate Insolvency Resolution Process (CIRP) by the NCLT, Kolkata Bench, vide order dated 05/12/2018. A liquidation order was passed against SBASL on

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## Issues and analysis

### Issue 1: Whether the application filed by Bank of Baroda under Section 95(1) of the IBC, 2016, for …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the

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**Reasoning:** The court considered the application filed by Bank of Baroda, the factual matrix of the

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** Bank of Baroda, being the creditor, has filed the application against Mr.

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Bank of B…
- **Respondents:** Badrinarain…; Avinash Chander…

## Timeline

- **2016-08-15 — Loan Accounts…**: Loan accounts of SBASL…
- **2019-10-09 — Notice under SARFAESI…**: Notice under Section 13(2) of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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