# In the matter of Kavita Jindal, CP (IB) No. 87/94(1)/JPR/2021

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03747. The case involves an application for withdrawal of an insolvency resolution process for…

- **Court:** NCLT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLT-03747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kavita-jindal-cp-ib-no-87941jpr2021-8a05b70e

## Summary

### Background

The case involves an application for withdrawal of an insolvency resolution process for personal guarantors to corporate debtors, specifically under Section 60(5) of the IBC, 2016 read with Rule 11 of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The applicant, Mrs. Kavita Jindal, was the personal guarantor for credit facilities obtained by M/s Aarti Suitings Pvt. Ltd. and M/s Adig Jemtex Pvt. Ltd. from the Bank of Baroda.

## Facts

Mrs. Kavita Jindal acted as a personal guarantor for credit facilities extended by the Bank of Baroda to M/s Aarti Suitings Pvt. Ltd. and M/s Adig Jemtex Pvt. Ltd. An application was filed under Section 60(5) of the IBC, 2016, read with Rule 11 of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, seeking to initiate an insolvency resolution process against Mrs. Jindal in her capacity as a personal guarantor. Subsequently, a compromise proposal was accepted by the Bank of Baroda. Based on this compromise, Mrs. Jindal applied for the withdrawal of the insolvency resolution process. The court then considered whether to grant permission for the withdrawal of

…

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency resolution process under Section 60(5) of …

**Ratio:** The legal principle applied is that if a compromise or settlement is reached between the

…

**Reasoning:** The court reasoned that since the Bank of Baroda had accepted a compromise proposal, it

…

**Interpretation:** Section 60(5) of the IBC, 2016, allows the Adjudicating Authority to deal with

…

**Application:** In this specific case, the compromise proposal accepted by the Bank of Baroda

…

## Parties

- **Judges:** Deep Chandr…; Ashish…
- **Appellants:** Kavita J…
- **Respondents:** M/s Aarti…

## Timeline

- **2021-01-01 — CP No. (IB)- 87/94/JPR/2…**: Corporate Insolvency Resolution Process…
- **2023-01-01 — IA No. 187/J…**: Application filed for withdrawal of…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kavita-jindal-cp-ib-no-87941jpr2021-8a05b70e