# In the matter of DBS Bank India Limited vs. Vijay Kumar

> NCLT judgment dated 2025-01-03. Citation: TCN-2025-NCLT-00682. The case originates from a petition filed by DBS Bank India Limited under Section 95 of the…

- **Court:** NCLT
- **Order date:** 3 Jan 2025
- **Citation:** TCN-2025-NCLT-00682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dbs-bank-india-limited-vs-vijay-kumar-eaf8967c

## Summary

### Background

The case originates from a petition filed by DBS Bank India Limited under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The petition seeks to initiate a personal insolvency resolution process against Mr. Vijay Kumar, who is the personal guarantor for a loan availed by Bharati Defence and Infrastructure Limited (formerly Bharati Shipyards Limited). DBS Bank India Limited, acting as an arranger to the facility, disbursed a term loan facility equivalent to USD 20 Million to the corporate debtor. The facility was secured by a personal guarantee from Mr. Vijay Kumar, as per a Deed of

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## Facts

DBS Bank India Limited (the Petitioner), a banking company, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a personal insolvency resolution process against Mr. Vijay Kumar (the Respondent), who acted as a personal guarantor. The Respondent is the Managing Director of Bharati Defence and Infrastructure Limited (the Corporate Debtor). The Corporate Debtor had availed a term loan facility equivalent to USD 20 Million from the original lender, with the Petitioner acting as an arranger. A Sanction Letter dated 12.07.2008 was issued, and a Facility Agreement dated 12.08.2008 was entered into. The facility was secured by a personal guarantee from the Respondent, as per a Deed of Guarantee dated 30.03.2010. The Corporate

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** The Hon'ble Supreme Court in Dilip B Jiwrajka vs. Union of India & Ors. upheld the

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**Reasoning:** The court relied on the precedent set by the Supreme Court, which clarified that no

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**Interpretation:** Section 95 of the IBC allows a financial creditor to apply for initiating an

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**Application:** In this case, the application was filed under Section 95 of the IBC, and the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** DBS Bank India…
- **Respondents:** Bharati Defence…; Vijay K…

## Timeline

- **2008-07-12 — Sanction…**: Date of the Sanction Letter…
- **2008-08-12 — Facility Ag…**: Date of the Facility Agreement entered 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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