# In the matter of Bank of Baroda vs. Jaishree

> NCLT judgment dated 2024-02-28. Citation: TCN-2024-NCLT-02325. The case involves an application filed under Section 95 read with Section 99 of the Insolvency…

- **Court:** NCLT
- **Order date:** 28 Feb 2024
- **Citation:** TCN-2024-NCLT-02325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-jaishree-04643f05

## Summary

### Background

The case involves an application filed under Section 95 read with Section 99 of the Insolvency and Bankruptcy Code (IBC), 2016. Bank of Baroda filed a petition under Section 95 of the IBC against Ms. Jaishree, the personal guarantor for credit facilities availed by M/s. Aastha Surgimed Limited (Corporate Debtor). The Resolution Professional, Mr. Sandeep Kumar Bhatt, filed a report recommending the admission of the application. The application pertains to initiating the Insolvency Resolution Process for Personal Guarantors to Corporate Debtors.

## Facts

Bank of Baroda filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ms. Jaishree, who is the personal guarantor for the credit facilities availed by M/s. Aastha Surgimed Limited, the Corporate Debtor. The total outstanding amount was Rs. 5,21,91,526.47 as on 31.08.2021. Mr. Sandeep Kumar Bhatt, the Resolution Professional, filed a report recommending the admission of the application. The Adjudicating Authority observed that the debt was proved, the personal guarantee was executed, and the guarantor failed to repay the debt after a demand notice. The respondent was given an opportunity to argue the matter subject to payment of costs, but this condition was not met. The Resolution Professional did not request instructions for

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the IBC, 2016 should be admitted for initiating …

**Ratio:** Section 95 of the IBC, 2016, allows a financial creditor to file an application for

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**Reasoning:** The Adjudicating Authority relied on the report submitted by the Resolution Professional,

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**Interpretation:** Section 95 of the IBC provides a mechanism for creditors to recover debts from

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**Application:** In this case, the Adjudicating Authority found that all the requirements under

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Bank of B…
- **Respondents:** Aastha Surgimed…; Jaish…
- **Advocates:** Mohit Nan…

## Timeline

- **2022-03-29 — Tribunal…**: Tribunal appointed Mr. Sandeep Kumar Bhatt as Resolution Professional vide order dated…
- **2021-08-31 — Outstanding…**: Total outstanding amount of Rs.…

## 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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