# In the matter of Central Bank of India Vs. Ajay Sureka, CP (IB)/402(KB)/2021

> NCLT judgment dated 2022-07-11. Citation: TCN-2022-NCLT-01773. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Jul 2022
- **Citation:** TCN-2022-NCLT-01773
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-ajay-sureka-cp-d62d6514

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Ajay Sureka, the personal guarantor of Concast Steel & Power Ltd. (CSPL). Central Bank of India, the applicant, seeks to recover a debt of Rs. 280,93,10,825.35/-.

## Facts

Central Bank of India (the Applicant), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, extended various credit facilities to Concast Steel & Power Ltd. (CSPL), the Principal Borrower. Mr. Ajay Sureka, the Respondent, acted as the personal guarantor for CSPL. CSPL defaulted on its repayment obligations, leading to its loan accounts being classified as NPA on 2015-03-31. CSPL was admitted into CIRP by the National Company Law Tribunal, Kolkata Bench, on 2018-09-26. The Applicant issued a Demand Notice in Form B on 2021-03-18, demanding Rs. 280,93,10,825.35/- from Mr. Ajay Sureka. The Applicant now seeks to initiate the Insolvency Resolution Process against the Respondent as a personal guarantor.

## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, along with the relevant rules and regulations,

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**Reasoning:** The court considered the application filed by the Applicant under Section 95(1) of the

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**Interpretation:** Section 95(1) of the IBC, 2016, allows a creditor to apply for initiating the

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**Application:** The court applied the provisions of Section 95(1) of the IBC, 2016, and Rule

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Central Bank of…
- **Respondents:** Concast Steel &…; Ajay Su…
- **Advocates:** Usha D…; Priyanka…; +5 more

## Timeline

- **2015-03-31 — Loan Accounts…**: Due to the failure of the Corporate Debtor to comply with the terms and conditions of the…
- **2018-09-26 — CIRP Admission…**: “CSPL” (Corporate Debtor) was admitted under CIRP by the National Company Law Tribunal,…

## 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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