# In the matter of Central Bank of India V/s Avinash Prakashchandra Bhandari, CP IB /192(AHM)/2021

> NCLT judgment dated 2022-05-13. Citation: TCN-2022-NCLT-02758. An application was filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016,…

- **Court:** NCLT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLT-02758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-avinash-prakashchandra-bhandari-cp-ib-192ahm2021-5e6427f2

## Summary

### Background

An application was filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the Corporate Insolvency Resolution Process (CIRP) of the Personal Guarantor. The issuance of notice was pending due to the issue of maintainability being before the Hon'ble Supreme Court. A Resolution Professional was not appointed, and a report was not called for. The Personal Guarantor challenged the maintainability of the application, arguing that an order passed by the Hon'ble NCLAT declared that the pendency of CIRP of the corporate debtor is not essential for proceeding against the Personal Guarantor, which was stayed by the Hon'ble Supreme Court. The matter was pending consideration.

## Facts

An application was filed under Section 95 of the IBC, 2016, seeking CIRP of the Personal Guarantor, Avinash Prakashchandra Bhandari. The issue of maintainability was pending before the Hon'ble Supreme Court. The Personal Guarantor challenged the maintainability of the application based on an order by the Hon'ble NCLAT, which stated that the pendency of CIRP of the corporate debtor is not essential for proceeding against the Personal Guarantor. This order was initially stayed by the Hon'ble Supreme Court. However, on 06.05.2022, the Hon'ble Supreme Court dismissed the appeal and upheld the NCLAT's order. The applicant requested the appointment of a Resolution Professional. The Personal Guarantor's counsel sought time to file a reply after receiving the report.

## Issues and analysis

### Issue 1: Whether the Resolution Professional should be appointed and a report be called for, given the …

**Ratio:** The dismissal of the appeal by the Hon'ble Supreme Court, upholding the NCLAT order,

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**Reasoning:** The Hon'ble Supreme Court's dismissal of the appeal effectively validated the NCLAT's

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**Interpretation:** The Supreme Court's decision signifies that the CIRP against the personal

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**Application:** Given the Supreme Court's decision, the court applied the ratio by appointing

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## Parties

- **Judges:** Dr.Deepti…; Ajai Das Me…
- **Respondents:** Avinash Prakashcha…

## Timeline

- **2022-05-06 — Supreme Court…**: The Hon'ble Supreme Court dismissed the appeal and upheld the order passed by the Hon'ble…
- **2022-05-13 — Order Del…**: Order delivered by the NCLT, Ahmedabad,…

## 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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