# In the matter of Basanti Devi

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00493. 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-00493
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/basanti-devi-a4a15ce0

## 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 Interim Resolution Process (IRP) 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/- extended by Punjab National Bank. The Resolution Professional (RP) filed a report recommending the admission of the application, stating that Mrs. Basanti Devi meets the criteria under Section 94 of the Code.

## 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 corporate debtor. The application seeks initiation of the Interim Resolution Process (IRP) due to a default in repayment of liabilities arising from the invocation of a personal guarantee. The debt amount is Rs. 16,73,10,124/-, related to a credit facility extended by Punjab National Bank. The Authority appointed Mr. Vishnu Upadhyay as the Resolution Professional (RP). The RP filed a report recommending the admission of the application, stating that Mrs. Basanti Devi meets the criteria under Section 94 of the Code. The applicant has also defaulted in making payment of unsecured creditors Rs.

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## Issues and analysis

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

**Ratio:** Section 94 of the IBC allows a debtor to initiate insolvency resolution process. Section

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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 provides the framework for initiating insolvency proceedings by a

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**Application:** The court applies the provisions of Section 94 and Section 99 to the facts of

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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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