# In the matter of Basanti Devi

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00495. The case involves an application filed by Mrs. Basanti Devi Baldva under Section 94(1) of the…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/basanti-devi-3ef85edb

## Summary

### Background

The case involves an application filed by Mrs. Basanti Devi Baldva under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process as a personal guarantor to the corporate debtor, M/s Baldva Textiles Private Limited. The application is based on a default in repayment of liabilities arising from the invocation of a personal guarantee for a debt of Rs. 16,73,10,124/- owed to Punjab National Bank. The Resolution Professional (RP) has filed a report recommending the admission of the application.

## Facts

Mrs. Basanti Devi Baldva filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, as a personal guarantor to M/s Baldva Textiles Private Limited. The application is based on a default in repayment of liabilities arising from the invocation of a personal guarantee for a debt of Rs. 16,73,10,124/- owed to Punjab National Bank. The Resolution Professional, Mr. Vishnu Upadhyay, was appointed on 2023-09-27 and filed a report recommending the admission of the application. The applicant also defaulted in making payment of unsecured creditors Rs. 27,20,000/-. The unsecured creditors are Ajay Baldva HUF, Mohit Jain, and Shwetambara Baldva.

## Issues and analysis

### Issue 1: Whether the application filed by Mrs. Basanti Devi Baldva meets the requirements of Section 94 of …

**Ratio:** Section 94 of the IBC allows a debtor to apply for initiation of insolvency resolution

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**Reasoning:** The court relies on the Resolution Professional's report, which confirms that the

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**Interpretation:** Section 94 of the IBC is interpreted to allow for the initiation of insolvency

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**Application:** The ratio and reasoning are applied to the facts of the case, where the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** BASANTI…
- **Respondents:** M/s Baldva…

## Timeline

- **2023-09-27 — Appointment of…**: Mr. Vishnu Upadhyay was appointed as the Resolution Professional vide order dated…
- **2023-11-30 — Order Pron…**: Order Pronounced On: -…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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