# In the matter of CFM Asset Reconstructions Pvt Ltd Vs. Darshan Lal Baweja, IB-13/ND/2023

> NCLT judgment dated 2023-02-06. Citation: TCN-2023-NCLT-04771. CFM Asset Reconstruction Pvt. Ltd. filed an application under Section 95 of the IBC, 2016…

- **Court:** NCLT
- **Order date:** 6 Feb 2023
- **Citation:** TCN-2023-NCLT-04771
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cfm-asset-reconstructions-pvt-ltd-vs-darshan-lal-baweja-ib-13nd2023-f9d8766e

## Summary

### Background

CFM Asset Reconstruction Pvt. Ltd. filed an application under Section 95 of the IBC, 2016 against Personal Guarantor Sh. Darshan Lal Baweja, seeking initiation of the IR process and appointment of a Resolution Professional (RP). The applicant issued an invocation notice on 2022-07-06 and served a copy of the demand notice on the respondent on 2022-08-30.

## Facts

CFM Asset Reconstruction Pvt. Ltd. initiated proceedings against Sh. Darshan Lal Baweja, who is the personal guarantor to a corporate debtor, under Section 95 of the IBC, 2016. The applicant sought the initiation of the insolvency resolution process and the appointment of a Resolution Professional (RP). An invocation notice was issued on 2022-07-06, and a demand notice was served on the respondent on 2022-08-30. The applicant did not propose a name for the RP. The interim moratorium has already commenced as stipulated under Section 96(1)(a) of IBC. The court appointed Mr. Neeraj Bhatia as the Resolution Professional.

## Issues and analysis

### Issue 1: Whether the application filed by CFM Asset Reconstruction Pvt. Ltd. under Section 95 of the IBC, …

**Ratio:** Section 95 of the IBC, 2016 allows creditors to initiate insolvency resolution process

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**Reasoning:** The applicant, CFM Asset Reconstruction Pvt. Ltd., has filed an application against the

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**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency proceedings

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**Application:** The application is maintainable as it is filed under Section 95 of the IBC,

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## Parties

- **Judges:** SHRI. ASHOK KUMAR…; Shri. L. N.…
- **Appellants:** CFM Asset…
- **Respondents:** Sh. Darshan Lal…

## Timeline

- **2022-07-06 — Invocation…**: The Applicant issued an…
- **2022-08-22 — Demand N…**: The Applicant served the copy of the demand notice dated 2022-08-22 on the Respondent on…

## 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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