# In the matter of Kookmin Bank vs. Bhavesh Harkishandas Mehta

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00197. Kookmin Bank filed a Company Petition under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kookmin-bank-vs-bhavesh-harkishandas-mehta-7fa9749f

## Summary

### Background

Kookmin Bank filed a Company Petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Bhavesh Harkishandas Mehta, a Personal Guarantor, due to default in repayment of a loan. The Financial Creditor had entered into a Channel Finance Agreement with Samsung India Electronics Private Limited, providing credit facilities to dealers. Compuage Infocom Limited was recognized as a dealer, and the Financial Creditor issued a Sanction Letter for INR 40,00,00,000. Mr. Atul H. Mehta and Mr. Bhavesh H. Mehta executed a Deed of Personal Guarantee.

## Facts

Kookmin Bank (Financial Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Bhavesh Harkishandas Mehta (Personal Guarantor) for defaulting on loan repayments. The Financial Creditor had a Channel Finance Agreement (CFA) with Samsung India Electronics Private Limited (SIEL) to provide credit to dealers. Compuage Infocom Limited (Corporate Debtor) was a dealer for SIEL. The Financial Creditor issued a Sanction Letter to the Corporate Debtor for INR 40,00,00,000. Bhavesh Harkishandas Mehta, along with Mr. Atul H. Mehta, executed a Deed of Personal Guarantee. The Financial Creditor extended credit of INR 19,08,20,327.68, but the Corporate Debtor defaulted. A notice was issued to the Corporate Debtor, and the Deed of Personal

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## Issues and analysis

### Issue 1: Whether the petition for initiating insolvency resolution process against the Personal Guarantor is …

**Ratio:** The court relied on the Supreme Court's decision in Dilip B Jiwrajka Vs. Union of India

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**Reasoning:** The court found that the petition was complete in all respects, as the Applicant had not

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**Interpretation:** The interpretation of Section 95 to Section 99 of the IBC, as clarified by the

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**Application:** The court applied this interpretation to the facts of the case and determined

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Kookmin…
- **Respondents:** Compuage Infocom…; Bhavesh Harkishand…

## Timeline

- **2022-11-17 — Sanction Lette…**: Financial Creditor issued a Sanction Letter to…
- **2022-11-24 — Deed of Personal…**: Mr. Atul H. Mehta and Mr. Bhavesh H. Mehta…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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