# In the matter of Central Bank of India Vs. Shantilal Surana, CP (IB) No 204/CHE/2021

> NCLT judgment dated 2022-02-15. Citation: TCN-2022-NCLT-04128. The Central Bank of India filed an application under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Feb 2022
- **Citation:** TCN-2022-NCLT-04128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-shantilal-surana-cp-a5050672

## Summary

### Background

The Central Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mr. Shantilal Surana, the personal guarantor of Surana Industries Limited. Surana Industries Limited is undergoing liquidation, with an order for liquidation passed on 2018-10-12. The application was filed due to a default that occurred on 2019-04-11. A demand notice was issued to the personal guarantor on 2020-12-09.

## Facts

The Central Bank of India filed an application against Mr. Shantilal Surana, the personal guarantor of Surana Industries Limited, which is under liquidation. The liquidation order for Surana Industries Limited was passed on 2018-10-12. The date of default is stated as 2019-04-11. A Deed of Guarantee executed by the Personal Guarantor is placed on record. A demand notice was issued to the Personal Guarantor on 2020-12-09. The application was filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016. The applicant did not mention the name of the Resolution Professional, so the Tribunal appointed Mr. V. Duraisamy as the Interim Resolution Professional.

## Issues and analysis

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

**Ratio:** Section 95(1) of the IBC, 2016 allows a creditor to file an application for initiating

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**Reasoning:** The court notes that the present petition is filed to initiate proceedings in terms of

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**Interpretation:** Section 95(1) provides a legal basis for creditors to pursue insolvency

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**Application:** The application by the Central Bank of India is maintainable under Section

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** The Central Bank…
- **Respondents:** Surana Industries…; Shantilal…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2018-10-12 — Liquidation…**: An order was passed for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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