# In the matter of Bank of Baroda vs. Sameer Somani

> NCLT judgment dated 2023-12-19. Citation: TCN-2023-NCLT-00152. The Bank of Baroda filed an application to initiate Insolvency Resolution Process against Mr.…

- **Court:** NCLT
- **Order date:** 19 Dec 2023
- **Citation:** TCN-2023-NCLT-00152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-sameer-somani-07960778

## Summary

### Background

The Bank of Baroda filed an application to initiate Insolvency Resolution Process against Mr. Sameer Somani, the personal guarantor of M/s Aditya Telelink Limited (Corporate Debtor), under Section 95 of the Insolvency and Bankruptcy Code, 2016. Mr. Somani had provided a personal guarantee to secure loans availed by the Corporate Debtor. The Corporate Debtor defaulted on repayment, leading to the invocation of the personal guarantee. The bank sought to recover the outstanding debt through this insolvency proceeding.

## Facts

Bank of Baroda filed an application to initiate Insolvency Resolution Process against Mr. Sameer Somani, the personal guarantor of M/s Aditya Telelink Limited. Mr. Somani provided a personal guarantee for loans availed by the Corporate Debtor. The loan was sanctioned on 2010-06-12, including a cash credit of Rs. 12 crores and a bank guarantee of Rs. 3 crores, totaling Rs. 15 crores. The loan was enhanced to Rs. 18 crores on 2012-04-09. The Corporate Debtor's account was classified as a Non-Performing Asset on 2016-09-28. A Recovery Certificate was issued by the Debt Recovery Tribunal, Jaipur, on 2021-12-07. A demand notice was issued to the Personal Guarantor on 2022-11-30. The total debt reflected in the application is Rs. 10,73,87,620.38 as of 2022-11-30, plus future

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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 IBC

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**Reasoning:** The court observed that the application was filed under Section 95 of the Code read with

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**Interpretation:** Section 95 allows a creditor to apply for initiating the insolvency resolution

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**Application:** The court found that the Bank of Baroda had filed the application in accordance

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Bank of B…
- **Respondents:** M/s Aditya…; SAMEER S…
- **Advocates:** Anubha…; Shashank Bh…

## Timeline

- **2010-06-12 — Loan Sanc…**: Loan sanctioned to the Corporate Debtor by the Applicant Bank, including Cash Credit of…
- **2012-04-09 — Loan Enhan…**: Loan granted was enhanced to the proposed…

## 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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