# In the matter of India Overseas Bank Vs. T G Saroja, CP (IB)/253/95/HDB/2022

> NCLT judgment dated 2023-04-27. Citation: TCN-2023-NCLT-03607. The case involves a petition filed by Indian Overseas Bank, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 27 Apr 2023
- **Citation:** TCN-2023-NCLT-03607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-overseas-bank-vs-t-g-saroja-cp-79148367

## Summary

### Background

The case involves a petition filed by Indian Overseas Bank, the Financial Creditor, under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking initiation of the Insolvency Resolution Process against T.G.Saroja, the Personal Guarantor of M/s. Blossom Oils & Fats Limited (Corporate Debtor). The Financial Creditor alleges non-payment of Rs. 531,84,50,653.00 as on 30.09.2021, including interest, which is said to be due and payable by the personal guarantor. The Corporate Debtor had availed credit facilities and defaulted, leading to the account being classified as NPA on

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## Facts

Indian Overseas Bank (IOB), the Financial Creditor, filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Smt. T.G.Saroja, the Personal Guarantor of M/s. Blossom Oils & Fats Limited (Corporate Debtor). The Corporate Debtor availed credit facilities from IOB and defaulted on repayments, leading to an outstanding debt of Rs. 531,84,50,653.00 as of 30.09.2021, including interest. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.03.2015, and liquidation proceedings were initiated by the NCLT, Hyderabad, on 10.10.2017. The Financial Creditor also pursued recovery through the Debt Recovery Tribunal (DRT), Hyderabad, and under the SARFAESI Act. The Personal Guarantor, T.G.Saroja, along with others,

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## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** The ratio is based on the interpretation and application of Section 95 and Section 100 of

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**Reasoning:** The court reasoned that the Personal Guarantor stood as a guarantor to the loans availed

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**Interpretation:** The interpretation involves understanding the scope and applicability of

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Indian Overseas…
- **Respondents:** M/s Blossom Oils…; T G Sa…

## Timeline

- **2013-10-05 — Guarantee Agreements…**: Shri R. Jaganmohan Rai, Smt. T.G.Saroja, Shri. T.G.S. Narayana and Shri. T.G.Prashanth,…
- **2015-03-31 — Corporate Debtor…**: The corporate debtor slipped…

## 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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