# In the matter of Indian Bank vs. Sri Sharanjit Singh

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02427. The case involves a petition filed by Indian Bank under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-bank-vs-sri-sharanjit-singh-6f389db7

## Summary

### Background

The case involves a petition filed by Indian Bank under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Sri Sharanjit Singh, the personal guarantor of M/s Walson Merchants Private Limited (the Corporate Debtor). The bank seeks to initiate the Insolvency Resolution Process against the personal guarantor due to the Corporate Debtor's failure to repay a debt of Rs. 42,64,70,499.94. The Corporate Debtor had approached the bank for various financial facilities, which were extended on 22.03.2010. A Deed of Guarantee was executed on 23.06.2010 by the Personal Guarantor.

## Facts

Indian Bank extended credit facilities to M/s Walson Merchants Private Limited (Corporate Debtor) on 22.03.2010. Sri Sharanjit Singh, as the personal guarantor, executed a Deed of Guarantee on 23.06.2010 to secure the repayment of the loan. The Corporate Debtor defaulted on the repayment, leading Indian Bank to classify the account as a non-performing asset (NPA) on 27.06.2014. Indian Bank issued a Demand Notice under Section 13(2) of the SARFAESI Act, 2002, on 03.06.2015. Indian Bank also filed a petition under section 19 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993, against the Personal guarantor of the Corporate Debtor. The Applicant has issued a Demand Notice in Form B on 03.12.2022 under Rule 7(1) of the IB Rules, 2019 but no response

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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(1) of the Insolvency and Bankruptcy Code, 2016, allows a creditor to file an

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**Reasoning:** The court considered the factual matrix of the case, including the Corporate Debtor's

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

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**Application:** In this case, the Corporate Debtor defaulted on its debt to Indian Bank, and

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** Indian…
- **Respondents:** M/s Walson…; Sharanjit…

## Timeline

- **2010-03-22 — Credit Facilities…**: Indian Bank extended various credit facilities…
- **2010-06-23 — Deed of Guarantee…**: Sri Sharanjit Singh executed a Deed of…

## 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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