# In the matter of Bank of Baroda Vs. Saurabh Kumar Tayal, CP (IB) No. 116 (AHM)/2022

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02273. The case involves an application filed by Bank of Baroda under Section 95 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-baroda-vs-saurabh-kumar-tayal-cp-26d8b320

## Summary

### Background

The case involves an application filed by Bank of Baroda under Section 95 of the Insolvency and Bankruptcy Code (IBC) for initiating the Insolvency Resolution Process against the personal guarantor of the Corporate Debtor, Honest Derivatives Private Limited. An affidavit was filed on 09.05.2022 in compliance with a previous order. The CIRP order against the corporate debtor is stayed pending an appeal, as per the NCLAT order dated 14.06.2021 in Company Appeal (AT) (INS) No. 404 of 2021. The NCLAT decision indicates that initiating CIRP against the corporate debtor is not mandatory for proceedings against the personal guarantor.

## Facts

Bank of Baroda filed an application under Section 95 of the IBC to initiate the Insolvency Resolution Process against the personal guarantor of Honest Derivatives Private Limited. An affidavit was filed on 09.05.2022 in compliance with a previous order. A CIRP order against the corporate debtor is stayed due to a pending appeal, according to an NCLAT order dated 14.06.2021. The NCLAT order suggests that initiating CIRP against the corporate debtor isn't mandatory for proceedings against the personal guarantor. Mr. Ashok Kumar Golechha is the Resolution Professional, and there are no pending disciplinary proceedings against him. The application seeks initiation of Insolvency Resolution Process against the personal guarantor.

## Issues and analysis

### Issue 1: Whether the initiation of CIRP against the corporate debtor is a mandatory prerequisite for …

**Ratio:** The NCLAT's decision indicates that initiating CIRP against the corporate debtor is not

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**Reasoning:** The court relies on the NCLAT's order, which clarifies that proceedings against the

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**Interpretation:** This interprets the IBC to allow for flexibility in pursuing insolvency

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**Application:** The court applied this principle by proceeding with the application against the

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## Parties

- **Judges:** Dr.Deepti…; Ajai Das Me…
- **Appellants:** Bank of B…
- **Respondents:** Honest Derivatives…; Saurabh Kumar…

## Timeline

- **2022-05-09 — Affidavit…**: An affidavit was filed in…
- **2021-06-14 — NCLAT Or…**: NCLAT order stating that CIRP against the corporate debtor is stayed and that initiating…

## 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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