# In the matter of Bhavna Ravi Matta

> NCLT judgment dated 2023-04-24. Citation: TCN-2023-NCLT-03658. The case involves a petition filed by Mrs. Bhavna Ravi Matta, the Personal Guarantor to the…

- **Court:** NCLT
- **Order date:** 24 Apr 2023
- **Citation:** TCN-2023-NCLT-03658
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhavna-ravi-matta-95af23ea

## Summary

### Background

The case involves a petition filed by Mrs. Bhavna Ravi Matta, the Personal Guarantor to the Corporate Debtor, under Section 94(1) of the Insolvency & Bankruptcy Code, 2016 (IBC), read with Rule 6(1) of the Insolvency and Bankruptcy (Application for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, seeking to initiate a bankruptcy process against herself. The Applicant had executed guarantee agreements to secure loans obtained by Asrec (India) Limited (the Financial Creditor) with respect to M/s North American Mercantile India Pvt. Ltd. (the Corporate Debtor) from Abhyudaya Co-operative Bank Ltd. The financial debt was incurred on 07.08.2018. The account was declared NPA on 09.12.2019. Asrec (India) Limited issued a possession

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## Facts

Mrs. Bhavna Ravi Matta, the Applicant, is the Personal Guarantor to the Corporate Debtor, M/s North American Mercantile India Pvt. Ltd. The Applicant executed guarantee agreements to secure loans obtained by Asrec (India) Limited (the Financial Creditor) from Abhyudaya Co-operative Bank Ltd. A financial debt was incurred on 07.08.2018. The account was declared a Non-Performing Asset (NPA) on 09.12.2019. Asrec (India) Limited issued a possession notice to the Applicant under Section 13(4) of the SARFAESI Act, 2002, on 24.02.2021. The Court of the Addl. Chief Metropolitan Magistrate directed for taking possession of the secured assets of the Applicant on 26.07.2022. The Applicant filed a petition under Section 94(1) of the Insolvency & Bankruptcy Code, 2016, seeking

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## Issues and analysis

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

**Ratio:** The court found that the petition

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**Reasoning:** The court did not provide specific reasoning but stated its opinion that the petition was

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**Interpretation:** The court interpreted the requirements for initiating the Insolvency Resolution

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**Application:** The court applied its interpretation to the facts of the case and determined

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Bhavna Ravi…
- **Respondents:** North American…; Asrec (India)…
- **Advocates:** Nikhil R…; Manoj M…

## Timeline

- **2018-08-07 — Financial Debt…**: Financial debt was incurred with the sanction of loan of Rs.9,50,00,000/- @11.50% p.a.…
- **2019-12-09 — Account Decla…**: The account of the Applicant was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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