# In the matter of Indian Bank vs. Amit Amarchand Narang

> NCLT judgment dated 2024-10-21. Citation: TCN-2024-NCLT-00388. The case involves a Company Petition filed by Indian Bank under Section 95 of the Insolvency…

- **Court:** NCLT
- **Order date:** 21 Oct 2024
- **Citation:** TCN-2024-NCLT-00388
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-bank-vs-amit-amarchand-narang-dc52d6c9

## Summary

### Background

The case involves a Company Petition filed by Indian Bank under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate an Insolvency Resolution Process against Mr. Amit Amarchand Narang, the Personal Guarantor, for the debts owed by Narang Developers Private Limited, the Corporate Debtor. The Corporate Debtor had availed Term Loan facilities from the Financial Creditor, Indian Bank, which were secured by the personal guarantee of Mr. Narang. Upon default, the account was classified as NPA, and a demand notice was issued. The bank then filed an application for the appointment of a Resolution Professional.

## Facts

Indian Bank, the Financial Creditor, filed a Company Petition against Mr. Amit Amarchand Narang, the Personal Guarantor of Narang Developers Private Limited, the Corporate Debtor, under Section 95 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had availed Term Loan facilities from Indian Bank, sanctioned on 09.03.2017, amounting to Rs. 7.85 Crores, secured by Mr. Narang's personal guarantee via a Guarantee Agreement dated 30.03.2017. Upon default, the account was classified as a Non-Performing Asset (NPA) on 18.09.2018. A legal notice was issued to the Corporate Debtor and Guarantors on 15.06.2020. The Applicant Bank sent a Demand Notice in Form B dated 23.05.2022 under rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority

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## Issues and analysis

### Issue 1: Whether the petition for initiating the insolvency resolution process against the Personal …

**Ratio:** The court relied on the principle that the petition should be prima facie complete in all

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**Reasoning:** The court reasoned that the petition appeared complete and fulfilled the necessary

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**Interpretation:** The interpretation involves assessing whether the application contains all the

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**Application:** The court applied this principle to the facts of the case and determined that

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Indian…
- **Respondents:** Narang Developers…; Amit Amarchand…

## Timeline

- **2017-03-09 — Sanction of T…**: Indian Bank sanctioned a Term Loan to Narang Developers Private Limited for Rs. 7.85…
- **2017-03-30 — Guarantee Ag…**: Mr. Amit Amarchand Narang provided a personal guarantee for the loan via a Guarantee…

## 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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