# In the matter of Bhupendra Singh Shekhawat vs. Oriental bank of Commerce

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02099. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02099
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhupendra-singh-shekhawat-vs-oriental-bank-of-commerce-4749cd0d

## Summary

### Background

The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The applicant, Bhupendra Singh Shekhawat, a personal guarantor to M/s Super Choco Foods LLP, sought initiation of the Insolvency Resolution Process. The corporate debtor availed credit facilities from Punjab National Bank (PNB).

## Facts

Bhupendra Singh Shekhawat, acting as a personal guarantor for M/s Super Choco Foods LLP, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the insolvency resolution process. M/s Super Choco Foods LLP, the corporate debtor, had availed various credit facilities from Punjab National Bank (PNB). These facilities included a term loan of Rs. 3.75 Crores and a cash credit facility of Rs. 1 Crore, both secured by hypothecation agreements dated 06.10.2015. Due to unavailability of funds, the account of the corporate debtor was classified as Non-Performing Asset (NPA) on 31.10.2017. PNB initiated recovery proceedings and issued notices under Section 13(2) of the SARFAESI Act, 2002, on 07.11.2017. PNB took possession of

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Bhupendra Singh Shekhawat, under Section …

**Ratio:** Section 94(1) of the Insolvency and Bankruptcy Code, 2016, allows a debtor to apply for

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**Reasoning:** The court considered that the applicant, being a personal guarantor to a corporate

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**Interpretation:** Section 94(1) provides a mechanism for personal guarantors to initiate

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**Application:** The court applied the provisions of Section 94(1) to the facts of the case,

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** BHUPENDRA SINGH…
- **Respondents:** M/s Super Choco…; Oriental Bank of…

## Timeline

- **2017-10-31 — Account Classified as…**: The account of the Corporate Debtor was…
- **2017-11-07 — SARFAESI Notic…**: PNB issued notices under Section 13(2) of…

## 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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