# In the matter of Indian Overseas Bank Vs. TG Prashanth, CP (IB)/257/95/HDB/2022

> NCLT judgment dated 2023-04-27. Citation: TCN-2023-NCLT-03601. The Indian Overseas Bank filed a petition under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Apr 2023
- **Citation:** TCN-2023-NCLT-03601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-overseas-bank-vs-tg-prashanth-cp-b0f2caf8

## Summary

### Background

The Indian Overseas Bank filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process against Shri. T.G.Prashanth, the personal guarantor of M/s. Blossom Oils & Fats Limited (Corporate Debtor). The corporate debtor had availed credit facilities and defaulted on payments, leading to the financial creditor initiating recovery proceedings. The corporate debtor underwent liquidation as per order dated 10.10.2017. The financial creditor issued a demand notice to the personal guarantor on 25.07.2022, but the guarantor failed to pay the outstanding amount of Rs.531,84,50,653.00/- as on 30.09.2021.

## Facts

Indian Overseas Bank (IOB) extended credit facilities to M/s. Blossom Oils & Fats Limited, which later defaulted on its repayment obligations. Shri. T.G.Prashanth acted as the personal guarantor for the corporate debtor. The corporate debtor's account was classified as a Non-Performing Asset (NPA) on 31.03.2015, and liquidation proceedings were initiated against it on 10.10.2017. Despite the financial creditor obtaining decrees and recovery certificates from the Debt Recovery Tribunal (DRT), the outstanding debt remained unpaid. The financial creditor issued a demand notice on 25.07.2022 to the personal guarantor, seeking payment of Rs.531,84,50,653.00/- as on 30.09.2021, including interest. The guarantor failed to comply, leading IOB to file a petition under

…

## 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

…

**Reasoning:** The Adjudicating Authority considered the Resolution Professional's report, which stated

…

**Interpretation:** Section 100 provides a mechanism for creditors to recover debts from personal

…

**Application:** In this case, the Corporate Debtor defaulted on its loan obligations, and the

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Indian Overseas…
- **Respondents:** M/s Blossom Oils…; Shri. TG Pr…

## Timeline

- **2015-03-31 — Corporate Debtor…**: The account of M/s. Blossom Oils & Fats Limited was classified as a Non-Performing Asset…
- **2017-10-10 — Liquidation…**: The Hon'ble NCLT, Hyderabad ordered the…

## 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-overseas-bank-vs-tg-prashanth-cp-b0f2caf8