# 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-02751. 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-02751
- **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-192ahm2021-8b5dde1a

## 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 had not been 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. The Hon'ble Supreme Court had stayed the proceedings against the Personal Guarantor, and 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 passed 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. The Hon'ble Supreme Court had stayed the proceedings against the Personal Guarantor. The Hon'ble Supreme Court dismissed the appeal on 06.05.2022 and upheld the order passed by Hon'ble NCLAT. The applicant requested a report from the Resolution Professional. The court appointed Resolution Professional Mr. Premraj Ramratan

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of IBC, 2016 for CIRP of the Personal Guarantor is …

**Ratio:** The maintainability of the application is subject to the orders of the Hon'ble Supreme

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**Reasoning:** The Hon'ble Supreme Court dismissed the appeal and upheld the order passed by Hon'ble

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**Interpretation:** The interpretation of Section 95 of IBC, 2016, is linked to the orders of the

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**Application:** The dismissal of the appeal by the Hon'ble Supreme Court and the upholding of

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## Parties

- **Judges:** DEEPTI M…; 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 Hon'ble…
- **2022-05-13 — Order Del…**: Order delivered by 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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