# In the matter of Bank of Baroda vs. Jai Kumar Somani

> NCLT judgment dated 2024-05-22. Citation: TCN-2024-NCLT-01287. The application MA(IBC)No. 02/JPR/2024 was filed by the Resolution Professional under Section…

- **Court:** NCLT
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-NCLT-01287
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-jai-kumar-somani-28c35a58

## Summary

### Background

The application MA(IBC)No. 02/JPR/2024 was filed by the Resolution Professional under Section 99(1) read with Section 99(7) of the Insolvency and Bankruptcy Code, 2016, recommending the admission of the application filed by Bank of Baroda under Section 95 of the Code. The creditor, Bank of Baroda, had filed the main application CP No. (IB)-32/95/JPR/2023 under Section 95 of the Code 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, seeking initiation of IRP against the Personal Guarantor of the Corporate Debtor for an amount of Rs. 10,73,87,620.38. The Authority vide order dated 19.12.2023 had appointed Ms. Pratibha Khandelwal as the

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## Facts

Bank of Baroda filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Insolvency Resolution Process against Mr. Jai Kumar Somani, the personal guarantor of M/s Aditya Telelink Limited, for a debt of Rs. 10,73,87,620.38. Ms. Pratibha Khandelwal was appointed as the Resolution Professional. The Resolution Professional filed a report under Section 99 of the IBC, recommending the admission of the application. The application was filed due to the personal guarantor's default in repayment of liabilities arising from the invocation of the personal guarantee given towards the corporate debtor, M/s Aditya Telelink Limited. The application was supported by details and documents relating to the debts owed by the personal

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor in the matter of Personal Guarantor Mr. Jai …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, specifies the conditions under

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**Reasoning:** The Personal Guarantor has committed default in repayment of his liabilities in terms of

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**Interpretation:** Section 95(1) outlines the prerequisites for initiating insolvency proceedings

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**Application:** The application filed by Bank of Baroda against Mr. Jai Kumar Somani, the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Bank of B…
- **Respondents:** M/s Aditya…; JAI KUMAR…

## Timeline

- **2023-12-19 — Appointment of…**: Ms. Pratibha Khandelwal was appointed as the Resolution Professional and directed to file…
- **2024-05-22 — Order Pron…**: Order Pronounced on the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 99(1) — Submission of report by resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-99)

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