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

> NCLT judgment dated 2024-09-04. Citation: TCN-2024-NCLT-00681. Canara Bank filed a Company Petition under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Sept 2024
- **Citation:** TCN-2024-NCLT-00681
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/canara-bank-vs-ravinndra-k-mogra-75fd37b0

## Summary

### Background

Canara Bank filed a Company Petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Ravindra K Mogra, the personal guarantor of Elegant Forge & Equipments Private Limited. Canara Bank had sanctioned a term loan of Rs. 50,00,00,000/- to Elegant Forge & Equipments Private Limited on 05.10.2018, for which Mr. Ravindra K Mogra provided a personal guarantee dated 02.03.2019. Canara Bank MCB, BKC Branch Mumbai also sanctioned a Term Loan of Rs. 50,00,00,000/- to the Corporate Debtor at their request vide sanction letter dated 05.10.2013. The Corporate Debtor defaulted on the loan, leading to its classification as a non-performing asset (NPA) on 30.11.2021. A legal notice was issued to the

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## 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 personal guarantee dated 02.03.2019 for the loan. Canara Bank MCB, BKC Branch Mumbai also sanctioned a Term Loan of Rs. 50,00,00,000/- to the Corporate Debtor at their request vide sanction letter dated 05.10.2013. 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 the loan, and the account was classified as an NPA on 30.11.2021. Mr. Ravindra K Mogra secured the Term Loan via mortgaging Flat No. 701 admeasuring 836 Sq. ft. Carpet area of Wing ‘A’ on the Seventh Floor of the building known as "Meenaxi Apartments” of

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## Issues and analysis

### Issue 1: Whether the petition for initiating insolvency resolution process against the personal guarantor is …

**Ratio:** The court relied on the provisions of Section 95 of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court observed that the petition was complete in all respects and that the petitioner

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**Interpretation:** The Supreme Court in Dilip B Jiwrajka case clarified that no judicial

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**Application:** The court applied the provisions of Section 95 of the IBC and the Supreme

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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…
- **2013-10-05 — Term Loan San…**: Canara Bank MCB, BKC Branch Mumbai sanctioned a Term Loan of Rs. 50,00,00,000/- to the…

## 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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