# In the matter of Bank of Maharashtra vs. I. Krishna Pillai

> NCLT judgment dated 2024-01-02. Citation: TCN-2024-NCLT-03349. Bank of Maharashtra filed an application under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Jan 2024
- **Citation:** TCN-2024-NCLT-03349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-i-krishna-pillai-fb4237a9

## Summary

### Background

Bank of Maharashtra filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against the Personal Guarantor, I.Krishna Pillai. The application stems from credit facilities extended to M/s Garuda Vaayu Sakthi Ltd, for which the Respondent had provided a personal guarantee. The Corporate Debtor defaulted on the debt, leading the Applicant to initiate CIRP against them.

## Facts

Bank of Maharashtra, the Applicant/Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against I.Krishna Pillai, the Respondent/Personal Guarantor. The application is based on the fact that M/s Garuda Vaayu Sakthi Ltd had taken credit facilities from the Applicant, and the Respondent had given a personal guarantee for the loan. The Corporate Debtor defaulted on the debt, which led the Applicant to initiate CIRP against the Corporate Debtor. The debt amount is Rs 244.11 Cr, including interest, and the date of default is 31.12.2014. The Applicant has submitted documents, including the Deed of Guarantee, Demand Promissory note, balance sheet, and statement of accounts. A

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 95 of the IBC allows a creditor to apply for initiating an Insolvency Resolution

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**Reasoning:** The court relied on the Supreme Court's judgment, which clarified that proceedings

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**Interpretation:** Section 95 of the IBC is interpreted to provide a mechanism for creditors to

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**Application:** In this case, the Applicant has filed an application under Section 95(1)

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Bank of Mah…
- **Respondents:** Garuda Vaayu…; I.Krishna…

## Timeline

- **2014-12-31 — Date of D…**: The Corporate Debtor…
- **2022-06-17 — Demand Notice…**: A Demand Notice was issued to the Personal Guarantor under Rule 7(1) of the Insolvency…

## 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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