# In the matter of Intec Capital Ltd Vs. Davinder Singh Chawla, CP (IB) 726/ND/2022

> NCLT judgment dated 2022-12-22. Citation: TCN-2022-NCLT-00080. The case pertains to a petition filed by Intec Capital Limited, a financial creditor, against…

- **Court:** NCLT
- **Order date:** 22 Dec 2022
- **Citation:** TCN-2022-NCLT-00080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/intec-capital-ltd-vs-davinder-singh-chawla-cp-61c17acf

## Summary

### Background

The case pertains to a petition filed by Intec Capital Limited, a financial creditor, against Mr. Davinder Singh Chawla, a personal guarantor to a corporate debtor, under Section 95(1) 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, and Regulation 4(2) of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. Intec Capital Limited, through its Associate Vice President Mr. Arvind Jha, initiated the Insolvency Resolution Process.

## Facts

Intec Capital Limited filed a petition against Mr. Davinder Singh Chawla, who is a personal guarantor to a corporate debtor, under Section 95(1) of the Insolvency and Bankruptcy Code, 2016. A statutory notice of demand dated 2022-08-10 was served to Mr. Chawla via email on the same date, requesting a payment of Rs. 2,77,42,758/-, the amount guaranteed by him. Mr. Chawla responded on 2022-08-22, denying the liability and failing to make any payment. The Tribunal issued a limited notice to Mr. Chawla, which was served via email on 2022-11-01 and confirmed through courier on 2022-11-14. The applicant also filed an affidavit of service dated 2022-11-15. The applicant proposed Mr. Amit Talwar as the Resolution Professional, and the Tribunal appointed him. An interim

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 is …

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

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**Reasoning:** The court considered the provisions of Section 95(1) of the IBC, 2016, and the related

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**Interpretation:** Section 95(1) provides a mechanism for creditors to pursue insolvency

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**Application:** The court applied Section 95(1) to the facts of the case, where Intec Capital

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## Parties

- **Judges:** TELAPROLU…; SH. RAHUL…
- **Appellants:** Intec Capital…
- **Respondents:** Davinder Singh…

## Timeline

- **2022-08-10 — Statutory Notice of…**: A statutory notice of demand was issued to Mr. Davinder Singh Chawla via email,…
- **2022-08-22 — Respondent'…**: Mr. Davinder Singh Chawla replied to the notice, denying the liability and failing 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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