# In the matter of Intec Capital Ltd Vs. Hardeep Singh, CP (IB) No. 265/(ND)/2022

> NCLT judgment dated 2022-04-26. Citation: TCN-2022-NCLT-03068. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Apr 2022
- **Citation:** TCN-2022-NCLT-03068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/intec-capital-ltd-vs-hardeep-singh-cp-113ef9f5

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016 by Intec Capital Limited, the Applicant/Financial Creditor, seeking initiation of insolvency proceedings against the Personal Guarantor, Mr. Hardeep Singh, of the Corporate Debtor. Previously, proceedings were initiated against the Corporate Debtor, which were admitted by the Tribunal. An appeal was filed before the NCLAT, which allowed the appeal based on a settlement proposal. However, the Corporate Debtor failed to honor the settlement terms, leading the Applicant to file a revival application, which was allowed by the Tribunal.

## Facts

Intec Capital Limited filed an application under Section 95(1) of the IBC, 2016, to initiate insolvency proceedings against Mr. Hardeep Singh, the Personal Guarantor of a Corporate Debtor. Earlier proceedings against the Corporate Debtor were admitted by the Tribunal but were later subject to a settlement agreement following an appeal to NCLAT. The Corporate Debtor failed to comply with the terms of the settlement, specifically defaulting on post-dated checks. Consequently, Intec Capital Limited filed a revival application, which was granted. The current application seeks to extend insolvency proceedings to the Personal Guarantor due to the Corporate Debtor's default. The application was filed on 2022-03-30. The relevance of these facts lies in establishing the grounds

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016, for initiating insolvency proceedings …

**Ratio:** Section 95(1) of the IBC allows a creditor to initiate insolvency proceedings against a

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**Reasoning:** The Tribunal reasoned that since the Corporate Debtor failed to honor the terms of the

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**Interpretation:** Section 95(1) is interpreted to provide recourse to creditors when a corporate

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** BBACHU VENKAT…; Virendra Kumar…
- **Respondents:** HARDEEP…

## Timeline

- **2019-09-03 — Order Passed Against…**: An order was passed against the Corporate Debtor in Company Petition No.IB-619/ND/2018,…
- **2019-12-06 — NCLAT Or…**: The Hon'ble NCLAT allowed an appeal against the order dated 03.09.2019, based on a…

## 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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