# In the matter of Jai Shree Mishra, CP (IB) No. 39/94(1)/JPR/2022

> NCLT judgment dated 2022-06-24. Citation: TCN-2022-NCLT-02052. The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Jun 2022
- **Citation:** TCN-2022-NCLT-02052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jai-shree-mishra-cp-ib-no-39941jpr2022-69743314

## Summary

### Background

The case pertains to an application 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 Smt. Jai Shree Mishra, a personal guarantor to M/s Niroz Insulations Pvt. Ltd. and M/s Triveni Agrotraders Pvt. Ltd. (Corporate Debtors). The applicant seeks to initiate the insolvency resolution process. A loan was advanced to the Corporate Debtor by State Bank of India, which later published a demand notice under Section 13(2) of the SARFAESI Act, 2002, due to default. An application under Section 10 of IBC, 2016 has also been filed by the Corporate Debtor itself seeking

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## Facts

Smt. Jai Shree Mishra, the applicant, is a personal guarantor for M/s Niroz Insulations Pvt. Ltd. and M/s Triveni Agrotraders Pvt. Ltd. (Corporate Debtors). A loan was advanced to the Corporate Debtor by State Bank of India. Due to default, the Financial Creditor published a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 2021-05-24. The applicant failed to fulfill obligations pursuant to the personal guarantee within 60 days of the notice. The total amount of default is Rs. 4,03,90,942/-, owed to various creditors including Kotak Mahindra Bank, Bajaj Finance Ltd., HDB Financial Services Ltd., State Bank of India, IDFC First Bank Ltd., Bank of Baroda, and India Bulls Ltd. The Corporate Debtor itself has filed an application under Section 10 of IBC,

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## Issues and analysis

### Issue 1: Whether the application filed by Smt. Jai Shree Mishra under Section 94(1) of the Insolvency and …

**Ratio:** Section 94(1) of the Insolvency and Bankruptcy Code, 2016, allows a debtor to initiate

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**Reasoning:** The court considered the applicant's status as a personal guarantor and the default on

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**Interpretation:** Section 94(1) provides a mechanism for personal guarantors to initiate

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

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** Jai Shree…
- **Respondents:** M/s Niroz…

## Timeline

- **2021-05-24 — Demand N…**: Financial Creditor published a demand notice under Section 13(2) of the SARFAESI Act,…
- **2022-04-22 — Filing of App…**: Interim moratorium commences from the date…

## 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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