# In the matter of DBS Bank India Limited Company Petition No.(IB)-753(ND)2021

> NCLT judgment dated 2022-07-27. Citation: TCN-2022-NCLT-01559. DBS Bank India Limited, as the Applicant/Financial Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 27 Jul 2022
- **Citation:** TCN-2022-NCLT-01559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dbs-bank-india-limited-company-petition-noib-753nd2021-1cf9d314

## Summary

### Background

DBS Bank India Limited, as the Applicant/Financial Creditor, filed an application under Section 95(1) of the IBC, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Shiv Sevak Singh, the Personal Guarantor/Debtor, who is the Guarantor of M/s VIL Limited, the Corporate Debtor. The Corporate Debtor had availed multiline working capital facilities from the Applicant Bank, which were renewed and amended over time. In 2010, the Applicant Bank made available working capital facilities aggregating up to Rs. 40,00,00,000/- to the Corporate Debtor under a Working Capital Facility Agreement dated 3rd May 2010,

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## Facts

DBS Bank India Limited (Applicant/Financial Creditor) filed an application to initiate the Insolvency Resolution Process against Mr. Shiv Sevak Singh (Personal Guarantor/Debtor) under Section 95(1) of IBC, 2016. Mr. Singh is the guarantor of M/s VIL Limited (Corporate Debtor). The Corporate Debtor availed multiline working capital facilities from the Applicant Bank, amounting to Rs. 40,00,00,000/-, under a Working Capital Facility Agreement dated 3rd May 2010. The Applicant entered into a Guarantee deed dated 4th May, 2010, with Mr. Shiv Sevak Singh and Mr. Naushad Ahmed, who were Directors of the Corporate Debtor. The Applicant claims to have served a demand notice to Mr. Singh on 21.01.2021 for an outstanding debt of Rs. 59,65,43,741/- as on 07.07.2015. The court

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## Issues and analysis

### Issue 1: Whether the Applicant has adequately demonstrated proof of service of the demand notice to the …

**Ratio:** The burden of proof lies on the applicant to demonstrate that the demand notice was duly

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**Reasoning:** The court observed that while the demand notice was annexed to the application, there was

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**Interpretation:** The legal requirement for initiating insolvency proceedings against a personal

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**Application:** The court found that the Applicant failed to provide sufficient evidence to

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## Parties

- **Judges:** SHRI. DHARMINDER…; Shri. L. N.…
- **Appellants:** DBS Bank India…
- **Respondents:** M/s VIL L…; SHIV SEVAK…

## Timeline

- **2010-04-10 — Sanction Lett…**: Date of the sanction letter No. CDT/ADMIN/216/2010 under which the working capital…
- **2010-05-03 — Working Capital…**: Date of the Working Capital Facility Agreement between the Applicant Bank and 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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