# In the matter of HDFC Bank Ltd Vs. Kunal Gambhir, CP (IB) No. 627/ND/2022

> NCLT judgment dated 2022-10-04. Citation: TCN-2022-NCLT-00847. The case involves an application under Section 95(1) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Oct 2022
- **Citation:** TCN-2022-NCLT-00847
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hdfc-bank-ltd-vs-kunal-gambhir-cp-971023fc

## Summary

### Background

The case involves an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, filed by HDFC Bank Limited against Mr. Kunal Gambhir, the personal guarantor to the corporate debtor. The application seeks to initiate the Insolvency Resolution Process ('IR Process'). A statutory notice of demand was served to the respondent on 09.07.2021, requesting payment of Rs. 52,26,96,631, for which the guarantee was invoked. Despite receiving the notice, the respondent failed to make the payment, leading to the filing of the present petition.

## Facts

HDFC Bank Limited, the financial creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mr. Kunal Gambhir, the personal guarantor to a corporate debtor. A statutory notice of demand was served to Mr. Gambhir on 09.07.2021, seeking payment of Rs. 52,26,96,631, which represents the amount for which the guarantee was invoked by HDFC Bank. Despite receiving the notice, Mr. Gambhir failed to make the payment. The Tribunal ordered the issuance of a limited notice to Mr. Gambhir, which was duly served via Dasti mode. An affidavit of service was also filed. The applicant proposed the name of Mr. Mukesh Kumar Jain as the Resolution Professional, and the Tribunal appointed him to the role. The relevance of these facts lies in

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## Issues and analysis

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

**Ratio:** Section 95(1) of the IBC allows a creditor to initiate insolvency resolution process

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**Reasoning:** The court considered the fact that HDFC Bank Limited, as the financial creditor, had

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** The ratio and reasoning apply to the specific facts of the case because HDFC

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** HDFC Bank L…
- **Respondents:** Kunal Ga…

## Timeline

- **2021-07-09 — Statutory Notice of…**: A statutory notice of demand was served to Mr. Kunal Gambhir, requesting payment of Rs.…
- **2022-09-09 — Tribunal Order for…**: The Tribunal ordered the issuance of a…

## 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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