# In the matter of Central Bank of India vs. Ashok Verma

> NCLT judgment dated 2024-09-06. Citation: TCN-2024-NCLT-00653. Central Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Sept 2024
- **Citation:** TCN-2024-NCLT-00653
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-ashok-verma-2ade30a0

## Summary

### Background

Central Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against a Personal Guarantor to a Corporate Debtor. The application seeks to initiate the Insolvency Resolution Process (IRP) and obtain a consequent order regarding the Personal Guarantor (PG). A demand notice dated 20.02.2024, as per Section 95(4)(b) and Rule 7, demanding payment of the default amount (in Form-B), was enclosed with the application and placed on record.

## Facts

Central Bank of India filed an application under Section 95 of the IBC, 2016, against a Personal Guarantor to a Corporate Debtor, seeking to initiate the Insolvency Resolution Process (IRP). A demand notice dated 20.02.2024 was served, demanding payment of the default amount. The court noted that an interim moratorium under Section 96(1)(a) of the IBC, 2016, had already commenced upon filing the application. The court also considered the Supreme Court's judgment in Dilip B Jiwrajka vs. Union of India & Ors. The applicant's counsel drew attention to the proof of service of the demand notice upon the Personal Guarantor and the Corporate Debtor. The relevance of the demand notice is to show that the guarantor was notified of the debt and given an opportunity to

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## Issues and analysis

### Issue 1: Whether the application filed by Central Bank of India under Section 95 of the IBC, 2016, is …

**Ratio:** Section 95 of the IBC, 2016, allows a creditor to file an application for initiating the

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**Reasoning:** The court considered the application filed by Central Bank of India under Section 95 of

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**Interpretation:** Section 95 of the IBC, 2016, provides a mechanism for creditors to initiate

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

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Central Bank of…
- **Respondents:** Sh. Ashok…

## Timeline

- **2024-02-20 — Demand Noti…**: Demand Notice issued to the Personal…
- **2023-11-09 — Supreme Court…**: Judgment of the Hon'ble Supreme Court of India in Dilip B Jiwrajka vs. Union of India &…

## 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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