# In the matter of Invent Assets Securitization and
Reconstruction Private Limited vs. Popatlal K. Jain

> NCLT judgment dated 2025-01-27. Citation: TCN-2025-NCLT-00573. The case pertains to a Company Petition (IB) No. 203 of 2023 filed by Invent Assets…

- **Court:** NCLT
- **Order date:** 27 Jan 2025
- **Citation:** TCN-2025-NCLT-00573
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/invent-assets-securitization-and-reconstruction-private-limited-vs-popatlal-k-ja-9fa50dbb

## Summary

### Background

The case pertains to a Company Petition (IB) No. 203 of 2023 filed by Invent Assets Securitization and Reconstruction Private Limited (the 'Financial Creditor') under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Personal Insolvency Resolution Process (PIRP) against Mr. Popatlal K. Jain ('Respondent'), the legal heir of Smt. Sakuben K. Jain (since deceased), who was the Personal Guarantor to the loan facility extended to M/s Shree Daksh Jyot Silk Mills Private Limited ('the Corporate Debtor'). The Original Financial Creditor, Abhyudaya Co-Operative Bank Limited, had sanctioned a Term Loan of Rs. 1284 Lakhs to the Corporate Debtor, secured by a Guarantee Deed executed by Mrs. Sakuben K. Jain. Mrs. Sakuben K. Jain had also mortgaged her

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## Facts

Invent Assets Securitization and Reconstruction Private Limited, acting as a Trustee, filed a Company Petition (IB) No. 203 of 2023 against Mr. Popatlal K. Jain, the legal heir of Smt. Sakuben K. Jain (deceased), who was the personal guarantor for a loan facility extended to Shree Daksh Jyot Silk Mills Private Limited. Abhyudaya Co-Operative Bank Limited, the original financial creditor, had sanctioned a Term Loan of Rs. 1284 Lakhs to the Corporate Debtor, secured by a Guarantee Deed from Mrs. Sakuben K. Jain and a mortgage of her personal property. The Corporate Debtor defaulted on the loan, leading to the account being classified as an NPA on 31.03.2016. The bank initiated arbitration proceedings, resulting in an award in its favor on 26.04.2018, directing the

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## Issues and analysis

### Issue 1: Whether the Respondent, as the legal heir of the deceased personal guarantor, is liable for the …

**Ratio:** The legal principle is that the legal heirs of a deceased guarantor are liable for the

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**Reasoning:** The court reasoned that the Respondent, being the legal heir of the deceased guarantor,

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**Interpretation:** This issue involves the interpretation of Section 95 of the IBC, read with the

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**Application:** In this case, the ratio and reasoning apply to the specific facts because the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Invent Assets…
- **Respondents:** Shree Daksh Jyot…; Popatlal K…

## Timeline

- **1992-02-06 — Mortgage…**: Mrs. Sakuben K. Jain…
- **2011-05-30 — Sanction…**: Abhyudaya Co-Operative Bank Limited sanctioned Term Loan of Rs. 1284 Lakhs to 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)

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