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

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02591. 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-02591
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-binod-kumar-jain-f8febc12

## 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 a personal guarantor to M/s. Earth International Private Limited (Corporate Debtor). The application seeks initiation of 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 interim moratorium under Section 96(1)(a) of IBC has commenced. Mr. Santanu Kumar Samanta was appointed as the Resolution Professional.

## Issues and analysis

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

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

…

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

…

**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

…

**Application:** The Bank of Maharashtra, being a creditor, filed the application against Mr.

…

## Parties

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

## Timeline

- **2022-09-17 — Demand N…**: Demand Notice dated 17.09.2022 issued to Mr. Binod Kumar Jain under Section 95(4)(b) of…
- **2024-02-14 — Order Del…**: Order delivered by the NCLT admitting the application and appointing Mr. Santanu Kumar…

## 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)

---

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-maharashtra-vs-binod-kumar-jain-f8febc12