# In the matter of Indian Overseas Bank Vs. T G S Narayana, CP (IB)/255/95/HDB/2022

> NCLT judgment dated 2023-04-26. Citation: TCN-2023-NCLT-03631. The case involves an application filed by Indian Overseas Bank, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 26 Apr 2023
- **Citation:** TCN-2023-NCLT-03631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-overseas-bank-vs-t-g-s-narayana-cp-dbeb9b13

## Summary

### Background

The case involves an application filed by Indian Overseas Bank, the Financial Creditor, 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 Debtor) Rules, 2019, seeking initiation of the Insolvency Resolution Process against Shri. T.G.S. Narayana, the Personal Guarantor of M/s. Blossom Oils and Fats Limited (Corporate Debtor). The Corporate Debtor allegedly defaulted on payments amounting to Rs. 531,84,50,653.00 as on 30.09.2021, including interest. The Corporate Debtor had availed credit facilities, and Shri. T.G.S. Narayana, along with others, stood as guarantor, executing guarantee agreements

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## Facts

Indian Overseas Bank (IOB), the Financial Creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Insolvency Resolution Process (IRP) against Shri. T.G.S. Narayana, the Personal Guarantor of M/s. Blossom Oils and Fats Limited (Corporate Debtor). The Corporate Debtor allegedly defaulted on a payment of Rs. 531,84,50,653.00 as of 30.09.2021, including interest. The Corporate Debtor had availed credit facilities such as Cash Credits, Working Capital Term Loan, and Letter of Guarantee. Shri. T.G.S. Narayana, along with others, stood as guarantor and executed guarantee agreements dated 05.10.2013 to secure the repayment of the financial assistance. The Corporate Debtor slipped into Non-Performing Asset (NPA)

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## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** Section 100 of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The Adjudicating Authority considered the report of the Resolution Professional, which

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**Interpretation:** Section 100 of the IBC allows for the initiation of IRP against a personal

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**Application:** In this case, the Personal Guarantor stood as a guarantor to the loans availed

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Indian Overseas…
- **Respondents:** M/s Blossom Oils…; T G S Nar…

## Timeline

- **2013-10-05 — Guarantee Agreements…**: Shri. T.G.S. Narayana and others executed guarantee agreements to secure the repayment of…
- **2015-03-31 — Corporate Debtor…**: The Corporate Debtor's account slipped…

## 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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