# In the matter of Jaganathan Rangasamy

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02441. 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-02441
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaganathan-rangasamy-57f60a6c

## 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, to initiate the Insolvency Resolution Process. The application pertains to the personal guarantee given by Mr. Rangasamy to M/s. Venkatesa Agency Private Limited, the corporate debtor. The corporate debtor failed to repay the debt, leading to the filing of this application.

## Facts

Mr. Jaganathan Rangasamy, acting as a personal guarantor for M/s. Venkatesa Agency Private Limited (the 'Corporate Debtor'), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. M/s. Venkatesa Agency Private Limited had taken credit facilities from Canara Bank, Pollachi Branch. Mr. Rangasamy had given a personal guarantee for the said loan. The Corporate Debtor failed to repay the debt, leading to the filing of the application. The debt including interest amounted to Rs.2,57,88,096/-, and the date of default occurred on 04.06.2021. A demand notice dated 04.06.2021 was issued by Canara Bank under Section 13(2) of the SARFAESI Act, 2002.

## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Mr. Jaganathan Rangasamy, under Section …

**Ratio:** Section 94(1) of the IBC allows a debtor to apply for initiating an Insolvency Resolution

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**Reasoning:** The court observed that the personal guarantor had himself moved the application for

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**Interpretation:** Section 94(1) of the IBC provides the legal basis for a debtor, including a

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**Application:** The court applied the provisions of Section 94(1) of the IBC and Rule 6(2) of

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## Parties

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

## Timeline

- **2021-06-04 — Date of D…**: The date on which the loan…
- **2021-06-04 — Demand Notice…**: Canara Bank issued a demand notice under…

## 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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