# in the matter of Kesar Singh Shekhawat vs. Oriental Bank of Commerce

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02112. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02112
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kesar-singh-shekhawat-vs-oriental-bank-of-commerce-61fce669

## 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 Debtor) Rules, 2019, by the applicant, Kesar Singh Shekhawat, who is the personal guarantor for M/s Super Shiv Shakti Chemicals Pvt. Ltd. The application seeks to initiate the Insolvency Resolution Process for the personal guarantor.

## Facts

Kesar Singh Shekhawat, the applicant, is the personal guarantor for M/s Super Shiv Shakti Chemicals Pvt. Ltd., the corporate debtor. The corporate debtor availed term loan facilities from Punjab National Bank (PNB), including cash credit and ad-hoc SLC facilities. The corporate debtor defaulted on its debt obligations, leading to its account being classified as a Non-Performing Asset (NPA) by PNB. Recovery proceedings were initiated by PNB, and notices were issued under Section 13(2) of the SARFAESI Act, 2002. The applicant failed to fulfill his obligations under the personal guarantee. The amount of default of the Corporate Debtor as on 04.02.2019 is Rs. 30,16,69,673.22/- and the date when the Debt fell due is 30.03.2017. The application was filed on 24.11.2023.

## Issues and analysis

### Issue 1: Whether the application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, is …

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

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**Reasoning:** The court observed that the applicant, Kesar Singh Shekhawat, being the personal

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**Interpretation:** Section 94(1) of the Code provides a mechanism for initiating insolvency

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

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** KESAR SINGH…
- **Respondents:** M/s Super Shiv…; Oriental Bank of…
- **Advocates:** Nitesh Shri…; Vikas…

## Timeline

- **2013-01-14 — Loan Agre…**: Corporate Debtor availed term loan facilities of Rs. 5 Crores from Punjab National Bank…
- **2013-10-23 — Additional Financial…**: Corporate Debtor availed Additional Financial Facility in the form of Ad-hoc SLC…

## 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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