# In the matter of Bank of Maharashtra Vs. Donkena Yadagiri, CP (IB)/49/95/HDB/2023

> NCLT judgment dated 2023-06-16. Citation: TCN-2023-NCLT-02909. The Bank of Maharashtra filed a petition under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Jun 2023
- **Citation:** TCN-2023-NCLT-02909
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-donkena-yadagiri-cp-81417c3d

## Summary

### Background

The Bank of Maharashtra filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking initiation of the Insolvency Resolution Process against Shri Donkena Yadagiri, the personal guarantor of M/s. Maven Life Sciences Private Limited. The bank had sanctioned credit facilities to Maven Life Sciences, which defaulted on its obligations, leading to its account being declared NPA. The personal guarantor had executed a Deed of Guarantee to secure the financial assistance.

## Facts

The Bank of Maharashtra extended credit facilities to M/s. Maven Life Sciences Private Limited, including cash credit, bank guarantee, and letter of credit, totaling Rs. 400 Lakhs. The corporate debtor defaulted on its repayment obligations, resulting in the account being classified as a Non-Performing Asset (NPA) on 2013-01-28. Shri Donkena Yadagiri, as the personal guarantor, executed a Deed of Guarantee on 2012-07-16 to secure the financial assistance granted to the corporate debtor. The bank issued a demand notice to the personal guarantor on 2022-06-15, requesting him to honor the terms of the agreement. The Resolution Professional (RP) was appointed on 2023-05-01 and filed a report recommending the admission of the petition under Section 95 of the Code, 2016, as

…

## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** Section 100 of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of the

…

**Reasoning:** The court reasoned that the personal guarantor had not offered any repayment plan or

…

**Interpretation:** Section 100 is interpreted to mean that if a personal guarantor fails to meet

…

**Application:** In this case, the court applied Section 100 to the facts presented, noting that

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Bank of Mah…
- **Respondents:** Maven Life…; Donkena Ya…

## Timeline

- **2012-07-16 — Deed of Guarantee…**: Respondent No.1, Personal Guarantor executed a Deed of Guarantee to secure the financial…
- **2012-07-14 — Sanction…**: The Petitioner Bank issued a Sanction letter bearing reference no.…

## 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)

---

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-donkena-yadagiri-cp-81417c3d