# In the matter of Indian Bank vs. Sanjay Gupta

> NCLT judgment dated 2024-02-26. Citation: TCN-2024-NCLT-02389. The case involves a petition filed by Indian Bank under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Feb 2024
- **Citation:** TCN-2024-NCLT-02389
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-bank-vs-sanjay-gupta-19625abc

## Summary

### Background

The case involves a petition filed by Indian Bank under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Sanjay Gupta, the personal guarantor of M/s City Mall Developers Private Limited (the Corporate Debtor). The Corporate Debtor had approached the bank for various credit facilities, which were extended. The Corporate Debtor failed to repay the loan, leading to the account being classified as a non-performing asset (NPA).

## Facts

Indian Bank filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Sanjay Gupta, the personal guarantor of M/s City Mall Developers Private Limited. The Corporate Debtor had approached Indian Bank for credit facilities, which were granted on 11.06.2007, 21.10.2011, and 28.09.2013. Mr. Sanjay Gupta executed personal guarantees on 10.09.2007 and 28.11.2011 to secure the repayment of the Cash Credit Facilities. The Corporate Debtor failed to repay the loan, leading to the account being classified as a non-performing asset (NPA) on 28.10.2015. Indian Bank issued a statutory Demand Notice under Section 13(2) of SARFAESI Act, 2002, on 06/11/2015. The applicant has already filed a petition

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## Issues and analysis

### Issue 1: Whether the application filed by Indian Bank under Section 95(1) of the Insolvency and Bankruptcy …

**Ratio:** Section 95 of the IBC read with Rule 7 of the Insolvency and Bankruptcy (Application to

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**Reasoning:** The court examined the application to ensure it complied with the statutory requirements.

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**Interpretation:** The legal issue involves interpreting Section 95 of the IBC and related rules

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**Application:** The court applied the requirements of Section 95 and related rules to the

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** Indian…
- **Respondents:** M/s City Mall…; Sanjay…
- **Advocates:** Santosh Kum…; Rituparna…; +2 more

## Timeline

- **2007-06-11 — Credit Facility…**: Indian Bank extended credit facilities to…
- **2011-10-21 — Credit Facility…**: Indian Bank extended credit facilities to…

## 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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