# In the matter of Indian Bank vs. Sanat Ishwarlal Parmar

> NCLT judgment dated 2024-10-03. Citation: TCN-2024-NCLT-00503. The Indian Bank, formerly Allahabad Bank, filed a Company Petition under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 3 Oct 2024
- **Citation:** TCN-2024-NCLT-00503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-bank-vs-sanat-ishwarlal-parmar-b73c4048

## Summary

### Background

The Indian Bank, formerly Allahabad Bank, filed a Company Petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Sanat Ishwarlal Parmar, the Personal Guarantor of M/s Ishwar Constructions Private Limited, for initiation of the Insolvency Resolution Process. The Financial Creditor presented a deed of guarantee executed by the Personal Guarantor dated 2018-01-30 and a demand notice (Form-B) dated 2019-12-02, calling upon the Personal Guarantor to pay an outstanding amount of Rs. 10,70,01,487/-.

## Facts

The Indian Bank (formerly Allahabad Bank) filed a petition against Sanat Ishwarlal Parmar, who is the personal guarantor for M/s Ishwar Constructions Private Limited. The petition seeks to initiate an Insolvency Resolution Process against the personal guarantor. The Financial Creditor presented a deed of guarantee dated 2018-01-30 and a demand notice (Form-B) dated 2019-12-02, demanding payment of Rs. 10,70,01,487/-. The demand notice was issued to the Personal Guarantor. The Financial Creditor also drew the bench's attention to the proof of the demand notice as of 2023-11-20. The key facts are the existence of the guarantee, the outstanding debt, and the demand notice served to the guarantor.

## Issues and analysis

### Issue 1: Whether the petition filed by the Indian Bank against Sanat Ishwarlal Parmar, the Personal …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 allows a creditor to initiate

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**Reasoning:** The court needs to determine if the conditions under Section 95(1) are met, including the

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** The court will apply Section 95(1) to the facts of the case to determine if the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Indian…
- **Respondents:** Ishwar Constructio…; Sanat Ishwarlal…
- **Advocates:** Kadambari…; Vaishali B…

## Timeline

- **2018-01-30 — Deed of Guarantee…**: The Personal Guarantor executed a deed of…
- **2019-12-02 — Demand Notice…**: The Financial Creditor issued a demand notice (Form-B) to the Personal Guarantor for an…

## 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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