# In the matter of Bank of Maharashtra Vs. Yelimali Venkatesh (Anna Eco Logiks Private Limited) , CP (IB)/365/95/HDB/2022

> NCLT judgment dated 2023-06-14. Citation: TCN-2023-NCLT-02954. The case involves a petition filed by Bank of Maharashtra against Shri Yelimali Venkatesh, the…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-02954
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-yelimali-venkatesh-79e32a32

## Summary

### Background

The case involves a petition filed by Bank of Maharashtra against Shri Yelimali Venkatesh, the personal guarantor of Anna Eco Logiks Private Limited (Corporate Debtor), under Section 95 of the Insolvency and Bankruptcy Code (IBC), 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. The bank sought initiation of the Insolvency Resolution Process (IRP) against the personal guarantor due to the corporate debtor's failure to meet its financial obligations. The bank had sanctioned a working capital facility to the corporate debtor, and the personal guarantor had executed a Deed of Guarantee to secure this financial assistance. The

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## Facts

Bank of Maharashtra sanctioned a working capital facility of Rs. 2.00 Crores to Anna Eco Logiks Private Limited (Corporate Debtor) vide sanction letter dated 27.02.2013. Shri Yelimali Venkatesh acted as the personal guarantor for the loan, executing a Deed of Guarantee on 05.03.2014. The corporate debtor defaulted on its obligations, leading to the loan account being declared NPA on 29.11.2014. The total repayments made by the corporate debtor amounted to Rs. 6,57,92,714.73, including a principal amount of Rs. 1,98,41,800.00 and interest of Rs. 4,59,50,914.73 (calculated until 23.08.2022). The bank issued a Form B demand notice dated 15.06.2022 to Shri Yelimali Venkatesh, requesting payment of the outstanding amount. The notice was delivered on 24.02.2023. The personal

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## 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 an

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**Reasoning:** The Adjudicating Authority considered the report of the Resolution Professional, the

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

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**Application:** In this case, Shri Yelimali Venkatesh, the personal guarantor, failed to repay

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Anna Eco Logiks…; Shri. Yelimali…

## Timeline

- **2013-02-27 — Sanction…**: Bank of Maharashtra issued a sanction letter for a Cash Credit facility to Anna Eco…
- **2014-03-05 — Deed of Gua…**: Shri Yelimali Venkatesh executed a Deed…

## 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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