# In the matter of Bhavna Ravi Matta

> NCLT judgment dated 2023-04-24. Citation: TCN-2023-NCLT-03667. 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-03667
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhavna-ravi-matta-a0bc6550

## 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), 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 Applicant's account was declared as Non-performing Assets (NPA) on 09.12.2019, and a demand notice was issued under Section 13(2) dated 25.02.2020, invoking the personal guarantee. Asrec (India) Limited issued a possession notice to the Applicant under Section 13(4) of the SARFAESI Act,

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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 with a loan of Rs.9,50,00,000/- at 11.50% p.a. The Applicant provided a Personal Guarantee as a Surety. The credit facilities were further modified on 30.11.2019 at 13% p.a. The account was declared an NPA on 09.12.2019 with an outstanding amount of Rs.9,55,69,330.25/-, and a demand notice was issued on 25.02.2020. The loan was transferred to Asrec (India) Limited, which issued a possession notice on 24.02.2021 under the SARFAESI Act. The

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## Issues and analysis

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

**Ratio:** The court opined that the

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**Reasoning:** The Bench considered the

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

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**Application:** Based on the facts presented in the application, the court found that all

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Bhavna Ravi…
- **Respondents:** North American…; Asrec (India)…

## Timeline

- **2018-08-07 — Loan San…**: Financial debt incurred with the sanction of loan of Rs.9,50,00,000/- @11.50% p.a. from…
- **2019-11-30 — Modification of Credit…**: Credit facilities modified to…

## 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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