# In the matter of Central Bank of India vs. Nayan Thakarshi Shah

> NCLT judgment dated 2024-08-01. Citation: TCN-2024-NCLT-00901. The Central Bank of India filed a Company Petition under Section 95 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Aug 2024
- **Citation:** TCN-2024-NCLT-00901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-nayan-thakarshi-shah-a1f1951a

## Summary

### Background

The Central Bank of India filed a Company Petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency resolution process against Mr. Nayan Thakarshi Shah, the personal guarantor of Neptune Developers Limited. The bank had sanctioned a construction loan to Neptune Developers, which was later admitted into CIRP. A loan recall notice and notice invoking guarantees were issued to the personal guarantors when the corporate debtor defaulted.

## Facts

The Central Bank of India (Petitioner/Financial Creditor) filed a Company Petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the insolvency resolution process against Mr. Nayan Thakarshi Shah (Respondent/Personal Guarantor), who is the personal guarantor of M/s. Neptune Developers Limited. The Central Bank of India had sanctioned a construction loan of Rs. 100 Crores out of a total project cost of Rs. 292.44 crores to Neptune Developers Limited. A Deed of Guarantee was executed on 30.03.2013, signed by personal guarantors including Shri Nayan Shah. On 16.07.2021, Neptune Developers Limited was admitted into CIRP. On 16.08.2018, a Loan Recall Notice and Notice Invoking the Guarantees were issued to the personal guarantors, demanding

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## Issues and analysis

### Issue 1: Whether the application for initiating insolvency resolution process against the Personal Guarantor …

**Ratio:** The petition for initiating insolvency resolution process against Personal Guarantor to

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**Reasoning:** The court noted that the petition was in the prescribed form as required by Section 95(6)

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**Interpretation:** Section 95(6) of the IBC mandates that the application for initiating

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**Application:** The court confirmed that the application filed by the Central Bank of India met

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Central Bank of…
- **Respondents:** Neptune Developers…; Nayan Thakarshi…

## Timeline

- **2013-03-30 — Deed of Guarantee…**: The Deed of Guarantee was executed by the…
- **2021-07-16 — Corporate Debtor…**: Neptune Developers Limited was admitted into Corporate Insolvency Resolution Process…

## 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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