# In the matter of Karur Vysya Bank Vs. Sourabh Goel, CP (IB)/411/ND/2022

> NCLT judgment dated 2022-09-06. Citation: TCN-2022-NCLT-01161. The Karur Vysya Bank Limited filed an application under Section 95(1) read with Rule 7(2) of…

- **Court:** NCLT
- **Order date:** 6 Sept 2022
- **Citation:** TCN-2022-NCLT-01161
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karur-vysya-bank-vs-sourabh-goel-cp-bed26e08

## Summary

### Background

The Karur Vysya Bank Limited filed an application under Section 95(1) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Sourabh Goel, the Personal Guarantor/Debtor, who is the Guarantor of M/s. Mahesh Industries Private Limited, the Corporate Debtor. The application pertains to a guarantee deed executed by Sourabh Goel on 21.08.2015, extending guarantee to the loan granted to M/s. Mahesh Industries Private Limited. The loan accounts of the Corporate Debtor became Non-Performing Assets on 31.03.2017.

## Facts

Karur Vysya Bank Limited (the 'Applicant/Creditor') filed an application under Section 95(1) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Sourabh Goel (Personal Guarantor/Debtor), who is the Guarantor of M/s. Mahesh Industries Private Limited (the 'Corporate Debtor'). On 21.08.2015, the Guarantee Deed was executed and signed by Mr. Sourabh Goel extending guarantee to the loan granted to M/s.Mahesh Industries Private Limited. The loan accounts of the Corporate Debtor became Non-Performing Asset (NPA) on 31.03.2017. The applicant invoked the guarantee on 19.04.2017 and sent a demand notice on

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## Issues and analysis

### Issue 1: Whether the application filed by Karur Vysya Bank Limited for initiating the Insolvency Resolution …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate

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**Reasoning:** The court considered the submissions and documents filed by the applicant, including the

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** The court applied Section 95(1) to the facts of the case, noting that Karur

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** The Karur Vysya…
- **Respondents:** M/s. Mahesh…; Sourabh…
- **Advocates:** Vijay K…; Rekha A…

## Timeline

- **2015-08-21 — Guarantee Deed…**: Guarantee Deed executed and signed by Mr. Sourabh Goel extending guarantee to the loan…
- **2017-03-31 — NPA Decla…**: Loan accounts of the Corporate Debtor M/s. Mahesh Industries Private Limited became…

## 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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