# In the matter of Central Bank of India vs. Amit Kumar Modi

> NCLT judgment dated 2024-03-01. Citation: TCN-2024-NCLT-02247. The Central Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Mar 2024
- **Citation:** TCN-2024-NCLT-02247
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-amit-kumar-modi-14103026

## Summary

### Background

The Central Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Shri Amit Kumar Modi, the personal guarantor to M/s Kut Energy Private Limited, seeking initiation of the Insolvency Resolution Process. The Resolution Professional (RP) submitted a report recommending the admission of the petition. The creditor had extended credit facilities to M/s Kut Energy Pvt. Ltd., which were guaranteed by Amit Kumar Modi. The creditor invoked the guarantees and issued a demand notice for the outstanding amount.

## Facts

The Central Bank of India, acting through a Resolution Professional, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Shri Amit Kumar Modi, who is the personal guarantor for credit facilities extended by the bank to M/s Kut Energy Private Limited. The bank had entered into guarantee agreements with Amit Kumar Modi on multiple dates between 2009 and 2015. The bank invoked these guarantees after M/s Kut Energy Private Limited defaulted on its payments and issued a notice dated 01.04.2017 under Section 13(2) of the SARFAESI Act, 2002. A demand notice was served to the personal guarantor on 07.10.2020, demanding payment of Rs. 102,31,26,013.89/-, but no payment was made. The Resolution Professional, after examining the application and

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, should …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to file an

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**Reasoning:** The Adjudicating Authority considered the Resolution Professional's report, which

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** In this case, the Central Bank of India, as the creditor, filed an application

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## Parties

- **Judges:** Harnam Singh…; L. N. G…
- **Appellants:** Central Bank of…
- **Respondents:** M/s Kut Energy…; Amit Kuma…

## Timeline

- **2009-08-28 — Guarantee Ag…**: Guarantee Agreement dated 28.08.2009 between…
- **2010-05-12 — Guarantee Ag…**: Guarantee Agreement dated 12.05.2010 between…

## 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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