# In the matter of Bank of Baroda vs. Sarla Devi Somani

> NCLT judgment dated 2024-05-22. Citation: TCN-2024-NCLT-01292. The application MA(IBC) No. 04/JPR/2024 was filed by the Resolution Professional under Section…

- **Court:** NCLT
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-NCLT-01292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-sarla-devi-somani-d6849b1a

## Summary

### Background

The application MA(IBC) No. 04/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 an application filed by Bank of Baroda under Section 95 of the Code. This application sought the commencement of the Insolvency Resolution Process against the Personal Guarantor, Mrs. Sarla Devi Somani, of the Corporate Debtor, M/s Aditya Telelink Limited. The creditor had filed the main application CP No. (IB)-38/95/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

…

## Facts

Bank of Baroda, the creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking the initiation of the Insolvency Resolution Process (IRP) against Mrs. Sarla Devi Somani, the personal guarantor of M/s Aditya Telelink Limited, the corporate debtor. The application was for a debt of Rs. 10,73,87,620.38. Ms. Pratibha Khandelwal was appointed as the Resolution Professional (RP) and directed to file a report under Section 99 of the IBC. The RP filed MA(IBC) No. 04/JPR/2024 recommending the admission of the application. The personal guarantor had committed default in repayment of her liabilities arising from the invocation of the personal guarantee towards the corporate debtor, and the liabilities remained unpaid. The application

…

## Issues and analysis

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

**Ratio:** Section 95(1) of the IBC, 2016, allows a creditor to initiate insolvency resolution

…

**Reasoning:** The court considered that the Personal Guarantor had committed default in repayment of

…

**Interpretation:** Section 95(1) is interpreted to mean that if a personal guarantor defaults on

…

**Application:** The court applied this principle to the fact that Mrs. Sarla Devi Somani, as

…

## Parties

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

## Timeline

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

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-sarla-devi-somani-d6849b1a