# In the matter of Dhanlaxmi Bank Ltd. vs. Bharath Chandran & Anr

> NCLT judgment dated 2023-12-21. Citation: TCN-2023-NCLT-00084. The case involves Interlocutory Applications (IAs) filed under Section 112 of the Insolvency…

- **Court:** NCLT
- **Order date:** 21 Dec 2023
- **Citation:** TCN-2023-NCLT-00084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dhanlaxmi-bank-ltd-vs-bharath-chandran-anr-337c41c9

## Summary

### Background

The case involves Interlocutory Applications (IAs) filed under Section 112 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 20 of the IBBI (Insolvency Resolution Process to Personal Guarantor to Corporate Debtors) Regulations, 2019. These applications were filed by the Resolution Professional (RP) in the matter of Dhanlaxmi Bank Limited, seeking to take on record reports indicating that the Personal Guarantors failed to submit a repayment plan within the stipulated time. The Tribunal had previously admitted the Insolvency Resolution Process (IRP) for the Personal Guarantors, Dr. Bharath Chandran and Dr. Asalatha Nair, based on an application by Dhanlaxmi Bank Limited under Section 95 of the IBC. The RP made a public announcement inviting claims

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## Facts

Dhanlaxmi Bank Limited initiated insolvency proceedings against Dr. Bharath Chandran and Dr. Asalatha Nair, who are personal guarantors to the corporate debtor, M/s. Trivandrum International Health Services Ltd. The Tribunal admitted the Insolvency Resolution Process (IRP) against the personal guarantors based on an application by the bank under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The Resolution Professional (RP) made a public announcement inviting claims and prepared reports for the Tribunal. Despite extensions, the personal guarantors failed to submit a repayment plan. The Meeting of Creditors resolved to file a report before the Adjudicating Authority due to the absence of a repayment plan. The personal guarantors challenged the

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## Issues and analysis

### Issue 1: Whether the reports of the Resolution Professional regarding the failure of the Personal Guarantors …

**Ratio:** The legal principle is that the Resolution Professional (RP) is required to submit

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**Reasoning:** The Tribunal reasoned that the RP had followed the prescribed procedures, including

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**Interpretation:** This issue involves the interpretation of the duties and responsibilities of

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**Application:** In this case, the RP's report was taken on record because the Personal

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## Parties

- **Judges:** TMT. Justice T…; Shri. Shyam Babu…
- **Appellants:** CA Rajmoh…
- **Respondents:** M/s. Trivandrum…; Bharath Ch…

## Timeline

- **2022-05-05 — Tribunal…**: The Tribunal vide order dated 05.05.2022 in CP(IB)/23/KOB/2022 and CP(IB)/24/KOB/2022…
- **2022-12-25 — Public Annou…**: The Resolution Professional stated that he has made a public announcement inviting claims…

## 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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