# In the matter of Jaganathan Rangasamy

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02412. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02412
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaganathan-rangasamy-1880e270

## Summary

### Background

The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, by Mr. Jaganathan Rangasamy, the Applicant and Personal Guarantor. The application seeks to initiate the Insolvency Resolution Process for Mr. Jaganathan Rangasamy, who is the personal guarantor for M/s. Venkatesa Agency Private Limited, the Corporate Debtor. M/s. Venkatesa Agency Private Limited had taken credit facilities from Canara Bank, Pollachi Branch. The Corporate Debtor failed to repay the debt, leading to the filing of this application.

## Facts

Mr. Jaganathan Rangasamy, the Applicant, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process as a Personal Guarantor. He is the personal guarantor for M/s. Venkatesa Agency Private Limited, the Corporate Debtor. M/s. Venkatesa Agency Private Limited had taken credit facilities from Canara Bank, Pollachi Branch. The Corporate Debtor defaulted on the loan, leading to the application by the Personal Guarantor. The amount of debt including interest is Rs.2,57,88,096/-, and the date of default occurred on 04.06.2021. Canara Bank issued a demand notice dated 04.06.2021 under Section 13(2) of the SARFAESI Act, 2002. The Applicant has proposed Mr. Madhu Desikan as the Resolution

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## Issues and analysis

### Issue 1: Whether the application for initiation of Insolvency Resolution Process by the Personal Guarantor …

**Ratio:** Section 94 of the IBC provides that a debtor may apply either by himself, or jointly with

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**Reasoning:** The court noted that the Personal Guarantor himself moved the application for initiation

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**Interpretation:** Section 94 of the IBC allows a debtor, including a personal guarantor, to

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**Application:** The court found that the application by Mr. Jaganathan Rangasamy, the Personal

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Jaganathan…
- **Respondents:** M/s. Venkatesa…

## Timeline

- **2021-06-04 — Date of D…**: The date on which the default occurred as…
- **2021-06-04 — Demand Notice…**: Canara Bank issued a Demand Notice dated 04.06.2021 under Section 13(2) of the SARFAESI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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