# In the matter of Indian Bank vs. Padma Bhushan Tiwari

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02205. The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-bank-vs-padma-bhushan-tiwari-6ca86767

## Summary

### Background

The case pertains to an application filed 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 Debtors) Rules, 2019, by Indian Bank, through its representative Mr. Ashok Kumar Golechha, seeking to initiate insolvency resolution process against Mr. Padma Bhushan Tiwari, the Personal Guarantor, for recovery of Rs. 12,47,87,180.40/-. The Corporate Debtor, Sonachi Industries Limited, had availed credit facilities from the financial creditor (then Allahabad Bank), which later amalgamated into Indian Bank. The loans were secured by the personal guarantee of Mr. Tiwari. Upon default, the account was

…

## Facts

Indian Bank, formerly Allahabad Bank, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Padma Bhushan Tiwari, who acted as a personal guarantor for credit facilities extended to Sonachi Industries Limited. The total amount in default was Rs. 12,47,87,180.40 as of March 31, 2022, with the date of default specified as October 18, 2018. Sonachi Industries Limited, the Corporate Debtor, had approached Allahabad Bank for CC and ILC/FLC loan facilities, which were sanctioned to the tune of 15 crores in 2015. Additionally, a term loan for car purchase was sanctioned in 2016. These loans were secured by a personal guarantee agreement dated December 31, 2015. Due to defaults, the account was classified as a Non-Performing Asset (NPA) on

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to file an

…

**Reasoning:** The NCLT observed that the application was filed under Section 95 of the IBC, and the

…

**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency proceedings

…

**Application:** The NCLT applied Section 95 to the facts of the case, noting that Indian Bank

…

## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Indian…
- **Respondents:** Sonachi Industries…; Padma Bhushan…

## Timeline

- **2015-11-26 — Sanction of CC and…**: Allahabad Bank sanctioned CC and ILC/FLC to Sonachi Industries Limited to the tune of 15…
- **2016-05-11 — Sanction of T…**: Allahabad Bank sanctioned a term loan for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-bank-vs-padma-bhushan-tiwari-6ca86767