# In the matter of Central Bank of India Vs. Himanshu Goyal, CP (IB)/185(KB)2021

> NCLT judgment dated 2022-04-26. Citation: TCN-2022-NCLT-03060. The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Apr 2022
- **Citation:** TCN-2022-NCLT-03060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-himanshu-goyal-cp-e1b5c668

## Summary

### Background

The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to the Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. Central Bank of India, the financial creditor, filed the application against Himanshu Goyal, the personal guarantor of BRG Iron and Steel Co.(P) Ltd., the corporate debtor. The corporate debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 03/02/2020, but was later put into liquidation due to the absence of a resolution plan.

## Facts

Central Bank of India extended loan facilities to BRG Iron and Steel Co.(P) Ltd., for which Himanshu Goyal acted as the personal guarantor, evidenced by a Deed of Guarantee dated 21.07.2014 & 08.03.2016. BRG Iron & Steel Co. (P) Ltd. defaulted on payments, leading to an outstanding amount of Rs.271.79 Crore as of 03.02.2020, along with further interest. The default of BRG Iron & Steel Co.(P) Ltd. was adjudicated vide notice of invocation made by the financial creditor on 25.02.2021. The Corporate Insolvency Resolution Process (CIRP) was initiated against BRG Iron & Steel Co.(P) Ltd. on 03/02/2020, but the company was later put into liquidation due to the absence of a resolution plan. The applicant initiated recovery actions against the guarantors under

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## Issues and analysis

### Issue 1: Whether the application filed by Central Bank of India under Section 95 of the Insolvency and …

**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 report of the Resolution Professional, which

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

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**Application:** In this case, the application filed by Central Bank of India was found to be

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Central Bank of…
- **Respondents:** BRG Iron and…; Himanshu…
- **Advocates:** Devajyoti…; Sudhir K. S…

## Timeline

- **2014-07-21 — Deed of Gua…**: Deed of Guarantee executed between…
- **2016-03-08 — Deed of Gua…**: Deed of Guarantee executed 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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