# In the matter of Bank of Baroda Vs. Mr. Rajan Kumar, CP (IB) No. 252/ND/2022

> NCLT judgment dated 2022-07-01. Citation: TCN-2022-NCLT-01941. The case pertains to an application filed by Bank of Baroda, the financial creditor, under…

- **Court:** NCLT
- **Order date:** 1 Jul 2022
- **Citation:** TCN-2022-NCLT-01941
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-mr-rajan-kumar-cp-5e2f966f

## Summary

### Background

The case pertains to an application filed by Bank of Baroda, the financial creditor, 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. Rajan Kumar, the personal guarantor, in respect of the debt disbursed to the borrower, M/s. Upal Buildtech Pvt. Ltd., the corporate debtor. The application was filed on 11.03.2022.

## Facts

Bank of Baroda sanctioned a term loan of Rs 7,45,00,000/- to UPAL Buildtech Private Limited on 10.04.2017. The corporate debtor filed Form CHG-1 with the Registrar of Companies, Kanpur, for the registration of charge of Rs 7,45,00,000/- in favor of the Financial Creditor. The Registrar of Companies issued a Certificate of Registration of Charge. The Corporate Debtor approached the Financial Creditor for another term loan of Rs 2,50,00,000/-, which was sanctioned. The aggregated term loan facility sanctioned to the Corporate Debtor was Rs. 9,95,00,000/-. Mr. Rajan Kumar stood as one of the Personal Guarantors for the financial facilities aggregating to Rs 9,95,00,000 and executed Letters of Guarantee. The Corporate Debtor availed the Term loan facilities but became

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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:** Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the

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**Reasoning:** The Tribunal considered the arguments advanced by the counsel for the applicant and

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**Interpretation:** The interpretation of Section 95 and related rules involves determining whether

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**Application:** The Tribunal applied Section 95 and related rules to the facts of the case,

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Bank of B…
- **Respondents:** M/s. Upal…; Rajan K…

## Timeline

- **2017-04-10 — Term Loan San…**: Bank of Baroda sanctioned a term loan of Rs 7,45,00,000/- to UPAL Buildtech Private…
- **2017-07-12 — Aggregated Term Loan…**: Aggregated term loan facility sanctioned to…

## 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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