# In the matter of Canara Bank vs. Ravindra K Mogra

> NCLT judgment dated 2024-09-04. Citation: TCN-2024-NCLT-00673. The case pertains to a Company Petition filed by Canara Bank under Section 95 of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Sept 2024
- **Citation:** TCN-2024-NCLT-00673
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/canara-bank-vs-ravindra-k-mogra-74ca98d2

## Summary

### Background

The case pertains to a Company Petition filed by Canara Bank under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Ravindra K Mogra, the personal guarantor to Elegant Forge & Equipments Private Limited. Canara Bank had sanctioned term loans to Elegant Forge & Equipments Private Limited, and Mr. Mogra had provided a personal guarantee to secure these loans. The corporate debtor defaulted on its payment obligations, leading to the bank classifying the credit facilities as non-performing assets (NPA). A legal notice was issued to the corporate debtor and the guarantor, followed by a demand notice. The petitioner seeks the appointment of a Resolution Professional.

## Facts

Canara Bank sanctioned a Term Loan of Rs. 50,00,00,000/- to Elegant Forge & Equipments Private Limited on 05.10.2018. Mr. Ravindra K Mogra provided a deed of personal guarantee dated 02.03.2019 to secure the loan. The loan carried an interest rate of 1 year MCLR+5.30%+TP (0.85) and was to be repaid over 7 years and 5 months. The Corporate Debtor defaulted on its payment obligations, and the credit facilities were classified as NPA on 30.11.2021. A legal notice was issued on 13.04.2022 to the Corporate Debtor and Mr. Ravindra K Mogra. A Demand Notice in Form B was issued on 17.11.2023. The outstanding dues of the Corporate Debtor amounted to Rs. 71,42,72,499.22. Mr. Ravindra K Mogra secured the Term Loan via mortgaging several properties, including flats in Meenaxi

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## Issues and analysis

### Issue 1: Whether the petition for initiating insolvency resolution process against the Personal Guarantor is …

**Ratio:** The Hon'ble Supreme Court in Dilip B Jiwrajka Vs. Union of India & Ors. Writ Petition

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**Reasoning:** The court considered the Supreme Court's observations regarding the nature of

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**Interpretation:** The Supreme Court's interpretation clarifies that the initial stages of the

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**Application:** The court applied this interpretation to the present case, finding that the

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Canara…
- **Respondents:** Elegant Forge &…; Ravindra K…

## Timeline

- **2018-10-05 — Term Loan San…**: Canara Bank sanctioned a Term Loan of Rs. 50,00,00,000/- to Elegant Forge & Equipments…
- **2019-02-03 — Deed of Personal…**: Mr. Ravindra K Mogra provided a…

## Legal provisions

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

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