# In the matter of Bank of Maharashtra vs. Satish Govind Dharne

> NCLT judgment dated 2024-10-30. Citation: TCN-2024-NCLT-00312. The case pertains to a Company Petition filed under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Oct 2024
- **Citation:** TCN-2024-NCLT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-satish-govind-dharne-fd135530

## Summary

### Background

The case pertains to a Company Petition filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, by Bank of Maharashtra (Applicant/Financial Creditor) against Mr. Satish Govind Dharne (Respondent/Personal Guarantor) for initiating the Insolvency Resolution Process. The applicant had sanctioned credit facilities to M/s Vishnu Gayatri Bio Coal & Agro Products Pvt. Ltd. (Corporate Debtor), secured by a Bond of Guarantee from Mr. Dharne. The Corporate Debtor defaulted, leading to its account being declared a Non-Performing Asset.

## Facts

Bank of Maharashtra, the applicant, filed a Company Petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Satish Govind Dharne, the respondent and personal guarantor. The bank had sanctioned two credit facilities to M/s Vishnu Gayatri Bio Coal & Agro Products Pvt. Ltd. (Corporate Debtor) amounting to Rs.2,00,00,000 as Cash Credit and Rs.7,80,00,000 as Term Loan. Mr. Dharne executed a Bond of Guarantee on 24.01.2013 in favor of the bank to secure these credit facilities, totaling Rs. 9,80,00,000. The Corporate Debtor defaulted on the loan repayment, resulting in the account being declared a Non-Performing Asset on 23.04.2014. The bank issued a SARFAESI Notice under section 13(2) on

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## Issues and analysis

### Issue 1: Whether the application for initiating insolvency resolution process against the Personal Guarantor …

**Ratio:** The Supreme Court in Dilip B Jiwrajka Vs. Union of India held that no judicial

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**Reasoning:** The court relies on the Supreme Court's ruling to state that at this stage, no

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**Interpretation:** The interpretation is that the initial stages of the insolvency resolution

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**Application:** The ratio is applied to the present case to justify the acceptance of the

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** M/s Vishnu…; Shri. Satish…

## Timeline

- **2013-01-19 — Sanction…**: Applicant sanctioned two facilities to M/s Vishnu Gayatri Bio Coal & Agro Products Pvt.…
- **2013-01-24 — Bond of Gua…**: Mr. Satish Govind Dharane executed a Bond of…

## 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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