# In the matter of IDBI Bank Ltd. vs. Seema Gupta

> NCLT judgment dated 2023-03-01. Citation: TCN-2023-NCLT-04410. The case involves an application under Section 95(1) of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 1 Mar 2023
- **Citation:** TCN-2023-NCLT-04410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/idbi-bank-ltd-vs-seema-gupta-f1d348d9

## Summary

### Background

The case involves an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Smt. Seema Gupta, a personal guarantor, by IDBI Bank Limited. The Resolution Professional (RP), Mr. Anil Kumar Mittal, was appointed and filed a report. The RP's report indicated that there was no proof of repayment of the debt by the personal guarantor to the applicant (IDBI Bank). The RP recommended the admission of the application.

## Facts

IDBI Bank Limited filed an application under Section 95(1) of the IBC, 2016, against Smt. Seema Gupta, a personal guarantor. The court appointed Mr. Anil Kumar Mittal as the Resolution Professional (RP). The RP submitted a report stating that there was no proof of repayment of the debt by the personal guarantor to IDBI Bank. The RP recommended the admission of the application. The respondent's counsel argued that there was a discrepancy in the amount of debt claimed. IDBI Bank had also filed an Original Application (OA No. 1062/2019) before DRT-III, Delhi, seeking recovery of Rs. 9,93,37,298.96. The court found that the amount of default was more than Rs. one crore. The applicant bank had charged exorbitant rate of interest and has compounded interest. The corporate

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016, against the personal guarantor, Smt. …

**Ratio:** The legal principle applied is that if the RP's report indicates a default exceeding the

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**Reasoning:** The court reasoned that the RP's report clearly stated that no payment had been made by

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**Interpretation:** Section 95(1) of the IBC allows for the initiation of insolvency resolution

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**Application:** In this case, the RP's report provided sufficient evidence of default and lack

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## Parties

- **Judges:** SHRI. ASHOK KUMAR…; Shri. L. N.…
- **Appellants:** IDBI Bank L…
- **Respondents:** Savemax Club…; Seema G…

## Timeline

- **2022-09-09 — Order for Appointment…**: IP Mr. Anil Kumar Mittal was…
- **2022-09-01 — RP Files…**: The RP filed its report stating no proof of…

## 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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