# In the matter of Hariom Rambabu Gupta

> NCLT judgment dated 2024-06-21. Citation: TCN-2024-NCLT-01135. The present application was filed on 29.01.2024 under Section 94(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 21 Jun 2024
- **Citation:** TCN-2024-NCLT-01135
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hariom-rambabu-gupta-09200f65

## Summary

### Background

The present application was filed on 29.01.2024 under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 (1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against the Applicant/Debtor, who is the Personal Guarantor of M/s Jay Dwarkadish Agri International LLP. The total default amount was Rs.6,52,29,981.82. The credit facility was extended by the Respondent Banks, namely Central Bank of India and ICICI Bank Limited. The corporate debtor availed a Term Loan of Rs.307.00 Lakhs and a CC limit of Rs.100.00 Lakhs for Working Capital. The applicant also availed OD cent Credit Facility as Prop. of M/s

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## Facts

Mr. Hariom Rambabu Gupta filed an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency resolution process as a personal guarantor to M/s Jay Dwarkadish Agri International LLP, the corporate debtor. The corporate debtor had availed credit facilities from Central Bank of India and ICICI Bank Limited, defaulting on a total amount of Rs.6,52,29,981.82. The Central Bank of India initiated recovery proceedings under the SARFAESI Act, including issuing demand notices and conducting a public auction of the corporate debtor's property. The applicant had also availed various credit facilities, including OD cent Credit Facility, Housing Loan, and Personal Loan Facilities, and had defaulted on these loans. The Central Bank of

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## Issues and analysis

### Issue 1: Whether the application filed under Section 94 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The Hon'ble NCLAT has held that an application under Section 94 is premature if the

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**Reasoning:** The NCLT relied on the decision of the Hon'ble NCLAT and the facts of the case, noting

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**Interpretation:** The invocation of the personal guarantee is a prerequisite for initiating

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**Application:** Since the personal guarantee was not invoked by the Central Bank of India, the

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Hariom Rambabu…
- **Respondents:** Jay Dwarkadish…; Central Bank of…

## Timeline

- **2024-01-29 — Application…**: The present application was filed under Section 94(1) of the Insolvency and Bankruptcy…
- **2023-04-24 — NPA Classif…**: Loan accounts of the Corporate…

## 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)

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