# In the matter of Diwan Singh, CP (IB) No. 675(ND)/2021

> NCLT judgment dated 2022-06-06. Citation: TCN-2022-NCLT-02373. The application was filed under Section 94 of the Insolvency & Bankruptcy Code, 2016, by Mr.…

- **Court:** NCLT
- **Order date:** 6 Jun 2022
- **Citation:** TCN-2022-NCLT-02373
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/diwan-singh-cp-ib-no-675nd2021-0c785d57

## Summary

### Background

The application was filed under Section 94 of the Insolvency & Bankruptcy Code, 2016, by Mr. Diwan Singh, the Applicant/Guarantor, seeking initiation of Insolvency Resolution Process. The applicant is the guarantor of Balaji Digital Solution Pvt. Ltd ('Corporate Debtor'). Notice was issued to the financial creditors on 2022-01-04.

## Facts

Mr. Diwan Singh, acting as a personal guarantor for Balaji Digital Solution Pvt. Ltd ('Corporate Debtor'), filed an application under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the initiation of the Insolvency Resolution Process. The application was filed because Mr. Diwan Singh is a guarantor for the corporate debtor. Upon filing the application, an interim moratorium commenced, as per Section 96(1)(a) of the IBC. The court issued a notice to the financial creditors on 2022-01-04. The IBBI informed that the online database may be used for sections 97(2) and 98(6) of the IBC. Mr. Vijay Kumar Narang was appointed as the Resolution Professional to evaluate the application and make recommendations.

## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Mr. Diwan Singh, under Section 94 of the …

**Ratio:** Section 94 of the IBC allows a debtor to apply for initiating the insolvency resolution

…

**Reasoning:** The court considered the application filed by the personal guarantor under Section 94 of

…

**Interpretation:** Section 94 of the IBC provides the legal basis for a debtor to initiate the

…

**Application:** The application was filed by Mr. Diwan Singh, the personal guarantor, under

…

## Parties

- **Judges:** ABNI RANJAN KUMAR…; HEMANT KUMAR…
- **Appellants:** Diwan S…
- **Respondents:** Balaji Digital…

## Timeline

- **2022-01-04 — Notice to Financial…**: Notice was issued to the Financial…
- **2022-06-03 — IBBI Let…**: IBBI informed that the online database may be used for sections 97(2) and 98(6) of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/diwan-singh-cp-ib-no-675nd2021-0c785d57