# In the matter of Bank of Maharashtra vs. Binod Kumar Jain

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02610. The Bank of Maharashtra filed an application under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 14 Feb 2024
- **Citation:** TCN-2024-NCLT-02610
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-binod-kumar-jain-bc187522

## Summary

### Background

The Bank of Maharashtra filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against Mr. Binod Kumar Jain, a personal guarantor to M/s. Earth International Private Limited (the Corporate Debtor). The application seeks to initiate the Insolvency Resolution Process (IRP) against the personal guarantor. A demand notice dated 17.09.2022 was issued under Section 95(4)(b) of the IBC, demanding payment of the default amount.

## Facts

Bank of Maharashtra filed an application under Section 95(1) of the IBC against Mr. Binod Kumar Jain, who is the personal guarantor for the Corporate Debtor, M/s. Earth International Private Limited. The application seeks to initiate the Insolvency Resolution Process (IRP) against the personal guarantor. A demand notice dated 17.09.2022 was issued to the personal guarantor demanding payment of the default amount. The application included the demand notice as Annexure A-4. The court noted that the service of the application was made to the Personal Guarantor but not upon the Corporate Debtor. The court also took note of the Supreme Court's judgment in Dilip B Jiwrajka vs. Union of India & Ors. Upon filing the application, an interim moratorium under Section 96(1)(a)

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## Issues and analysis

### Issue 1: Whether the application filed by Bank of Maharashtra under Section 95(1) of the IBC for initiating …

**Ratio:** Section 95(1) of the IBC allows a creditor to file an application for initiating the

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**Reasoning:** The court considered the application filed by the Bank of Maharashtra and noted that the

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**Interpretation:** Section 95(1) of the IBC provides a mechanism for creditors to recover their

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**Application:** The Bank of Maharashtra, being a creditor, filed an application under Section

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Earth Internationa…; Binod Kuma…

## Timeline

- **2022-09-17 — Demand N…**: Demand Notice issued to Mr. Binod Kumar…
- **2023-01-01 — Filing of App…**: Bank of Maharashtra filed an application under Section 95(1) of the IBC against Mr. Binod…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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