# In the matter of IDBI Bank Ltd. vs. Avinash Jain

> NCLT judgment dated 2024-02-13. Citation: TCN-2024-NCLT-02617. The case involves an application filed by IDBI Bank Ltd. against Mr. Avinash Jain, the personal…

- **Court:** NCLT
- **Order date:** 13 Feb 2024
- **Citation:** TCN-2024-NCLT-02617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/idbi-bank-ltd-vs-avinash-jain-b0095b11

## Summary

### Background

The case involves an application filed by IDBI Bank Ltd. against Mr. Avinash Jain, the personal guarantor of Arise India Limited, under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the insolvency resolution process. Mrs. Deepika Bhugra Prasad was appointed as the Resolution Professional (RP) for the personal guarantor and was directed to file a report under Section 99 of the IBC. The RP filed IA No. 3421/ND/2022, recommending the admission of the application. The respondent opposed the admission, claiming the application was barred by limitation.

## Facts

IDBI Bank Ltd. filed a Company Petition (IB)-222(ND)/2022 against Mr. Avinash Jain, the personal guarantor of Arise India Limited, under Section 95 of the IBC, 2016. The bank sought to initiate the insolvency resolution process (IRP) against the personal guarantor. Mrs. Deepika Bhugra Prasad was appointed as the Resolution Professional (RP). The RP filed IA No. 3421/ND/2022, recommending the admission of the application. The personal guarantee was extended via a Deed of Guarantee executed on 2014-12-11. The outstanding debt amounted to Rs. 208,56,32,144/-. The corporate debtor, Arise India Ltd., defaulted on credit facilities, leading to its account being declared a Non-Performing Asset (NPA) on 2017-01-30. The creditor issued a demand notice on 2021-09-13. The

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of …

**Ratio:** The Supreme Court's order in Suo Moto Writ Petition (c) No. 3/2020 provided for the

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**Reasoning:** The court considered the Supreme Court's order and determined that the exclusion of the

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**Interpretation:** The Supreme Court's order provided relief to litigants by excluding a certain

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**Application:** The court applied the Supreme Court's order to the facts of the case, excluding

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** IDBI Bank…
- **Respondents:** Arise Indi…; AVINASH…

## Timeline

- **2014-12-11 — Execution of Deed of…**: The Respondent/Debtor extended Personal Guarantee vide Deed of Guarantee executed on this…
- **2017-01-30 — Declaration…**: The account of the Corporate Debtor was…

## 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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