# In the matter of Bank of Maharashtra vs. Shashank Gokhale

> NCLT judgment dated 2024-04-05. Citation: TCN-2024-NCLT-01806. The Bank of Maharashtra filed a petition under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Apr 2024
- **Citation:** TCN-2024-NCLT-01806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-shashank-gokhale-428b4ccb

## 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 Debtors) Rules, 2019, seeking to initiate Insolvency Resolution Process against Mr. Shashank Gokhale, the personal guarantor of M/s Brainer Impex Limited. The Corporate Debtor and its guarantors had approached the Financial Creditor in 2011 for a cash credit facility of Rs. 9,75,00,000, which was sanctioned. The Corporate Debtor defaulted in repayment, leading to a notice dated 17.04.2015 under the SARFAESI Act. An application no. 983/2016 was filed by the Financial Creditor against the Corporate Debtor

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## Facts

In 2011, the Corporate Debtor and its guarantors sought a cash credit facility of Rs. 9,75,00,000 from the Financial Creditor, Bank of Maharashtra, which was sanctioned on 04.08.2011. The Personal Guarantor executed a Guarantee Bond on 25.10.2011. The Corporate Debtor defaulted, leading to a SARFAESI notice dated 17.04.2015 for an outstanding amount of Rs. 10,67,73,935. An application (no. 983/2016) was filed by the Financial Creditor against the Corporate Debtor before the DRT, Pune, which is pending. The Corporate Debtor was admitted into CIRP on 24.06.2019, and liquidation was ordered on 23.09.2021. The Financial Creditor invoked the personal guarantee via notice dated 17.05.2015. A demand notice dated 27.06.2022 was issued to the Personal Guarantor for Rs.

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## Issues and analysis

### Issue 1: Whether the petition for initiating Insolvency Resolution Process against the Personal Guarantor to …

**Ratio:** The ratio is based on Section 95 of the Insolvency and Bankruptcy Code, 2016, which

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**Reasoning:** The court reasoned that the petition was complete and in accordance with the requirements

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

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** M/s Brainer Impex…; Shashank G…

## Timeline

- **2011-01-01 — Cash Credit Facility…**: The Corporate Debtor and its guarantors approached the Financial Creditor for a cash…
- **2011-08-04 — Sanction of Cash Credit…**: The Financial Creditor…

## 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)

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