# In the matter YES Bank Ltd Vs. Mahendra Kumar Jajoo, CP (IB)/54/ND/2022

> NCLT judgment dated 2022-08-03. Citation: TCN-2022-NCLT-01488. The case involves an application (IA-1411/2022) related to a Company Petition (IB) No.…

- **Court:** NCLT
- **Order date:** 3 Aug 2022
- **Citation:** TCN-2022-NCLT-01488
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/in-the-matter-yes-bank-ltd-vs-mahendra-kumar-jajoo-cp-30e704bb

## Summary

### Background

The case involves an application (IA-1411/2022) related to a Company Petition (IB) No. 54(ND)/2022 filed under Sections 96, 97, 99 & 100 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6(1) of the IB (Application to Adjudicating Authority for IRP for Personal Guarantors to CD) Rules, 2019. Yes Bank Limited, the petitioner/creditor, filed a petition under Section 95 of the IBC against Mr. Mahendra Kumar Jajoo, the respondent/personal guarantor, who is the personal guarantor to the corporate debtor, M/s. Emkay Automobile Industries Limited, for a credit facility amounting to Rs. 22,25,62,762.22 as of 12.10.2021. The Adjudicating Authority appointed Mr. Gautam Mittal as the Resolution Professional (RP) and directed him to examine the application

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## Facts

Yes Bank Limited (the Petitioner/Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. Mahendra Kumar Jajoo (the Respondent/Personal Guarantor). The petition pertains to a credit facility availed by M/s. Emkay Automobile Industries Limited (the Corporate Debtor), for which Mr. Jajoo acted as the personal guarantor. The amount outstanding was Rs. 22,25,62,762.22 as of 12.10.2021. A demand notice was issued to Mr. Jajoo on 18.11.2021. The Resolution Professional (RP), Mr. Gautam Mittal, was appointed on 11.03.2022 and filed a report recommending the admission of the petition. The RP's report stated that Yes Bank had provided evidence of the debt, the demand notice, and the unpaid debt. The Respondent/Personal Guarantor

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the IBC, 2016, should be admitted against the …

**Ratio:** Section 95 of the IBC, 2016, allows a creditor to file an application for initiating the

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**Reasoning:** The Adjudicating Authority considered the RP's report, which stated that Yes Bank had

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

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**Application:** The Adjudicating Authority found that the requirements of Section 95 were met

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Yes Bank L…
- **Respondents:** Emkay Automobiles…; MAHENDRA KUMAR…
- **Advocates:** Dhananjay…; Anuj Mal…; +1 more

## Timeline

- **2021-10-12 — Debt Outst…**: Amount outstanding was Rs.…
- **2021-11-18 — Demand N…**: Demand notice issued to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 96 — Interim- moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-96)

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