# In the matter of Canara Bank vs. Nandu Kishinchand Belani

> NCLT judgment dated 2024-01-15. Citation: TCN-2024-NCLT-03069. Canara Bank, as the Financial Creditor/Applicant, filed a petition under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 15 Jan 2024
- **Citation:** TCN-2024-NCLT-03069
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/canara-bank-vs-nandu-kishinchand-belani-69e973ea

## Summary

### Background

Canara Bank, as the Financial Creditor/Applicant, filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Nandu Kishinchand Belani, the Personal Guarantor/Respondent, who is also one of the directors of BBT Elevated Road Private Limited (the Corporate Debtor). The application pertains to a debt amounting to Rs. 197,36,12,442.69/-. The Corporate Debtor had approached the applicant seeking various financial facilities, which were extended on 17/01/2015, including a Cash Credit Facility. The Corporate Debtor failed to repay the principal sum and interest as per the agreement, leading to the account being classified as a non-performing asset (NPA) on 31.01.2020.

## Facts

Canara Bank extended credit facilities to BBT Elevated Road Private Limited on 17/01/2015. Nandu Kishinchand Belani, as a director of BBT Elevated Road Private Limited, provided a personal guarantee on 24/02/2015 to secure the repayment of the debt. BBT Elevated Road Private Limited defaulted on the repayment, leading Canara Bank to classify the account as NPA on 31/01/2020. Canara Bank issued a demand notice to Nandu Kishinchand Belani on 20/10/2023, but received no response. The total debt outstanding is Rs. 197,36,12,442.69/-. Canara Bank then filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Nandu Kishinchand Belani as the personal guarantor.

## Issues and analysis

### Issue 1: Whether the application filed by Canara Bank under Section 95(1) of the Insolvency and Bankruptcy …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the

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**Reasoning:** The court considered the factual conspectus presented by the applicant, Canara Bank, and

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**Interpretation:** Section 95 provides the mechanism for a creditor to initiate insolvency

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**Application:** The court applied the provisions of Section 95 and Rule 7 to the facts of the

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** Canara…
- **Respondents:** BBT Elevated Road…; Nandu Kishinchand…
- **Advocates:** Dipanka…

## Timeline

- **2015-01-17 — Credit Facilities…**: Canara Bank extended various Credit facilities to BBT Elevated Road Private Limited,…
- **2015-02-24 — Personal Guarantee…**: Nandu Kishinchand Belani executed a personal guarantee in favor of Canara Bank to secure…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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