# In the matter of M. Thalaimuthu Nadar vs. Indian Bank

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02925. The case involves an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02925
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-thalaimuthu-nadar-vs-indian-bank-964872a5

## Summary

### Background

The case involves an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, by Mr. M.Thalaimuthu Nadar, the applicant and personal guarantor, to initiate the Insolvency Resolution Process in respect of himself as the personal guarantor for M/s. Sunaichandran Mills Private Limited, the corporate debtor. The corporate debtor had taken credit facilities from the respondent, Indian Bank, and failed to repay the debt, leading to the filing of this application.

## Facts

Mr. M.Thalaimuthu Nadar, the applicant, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process as a personal guarantor for M/s. Sunaichandran Mills Private Limited ('Corporate Debtor'). The Corporate Debtor had taken credit facilities from Indian Bank, the respondent. Mr. M.Thalaimuthu Nadar had given a personal guarantee for the loan. The Corporate Debtor defaulted on the debt, with the amount of default being Rs.3,74,64,783/- as of 30.09.2018. The applicant has placed a copy of the Demand Notice dated 01.10.2018 issued by Canara Bank and the Auction Sale Notice dated 05.05.2023 issued by Indian Bank. The applicant also filed a statement of affairs as on 25.05.2023. The guarantor has

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## Issues and analysis

### Issue 1: Whether the application filed by Mr. M.Thalaimuthu Nadar under Section 94(1) of the Insolvency and …

**Ratio:** Section 94 of the IBC provides that a debtor may apply either by himself, or jointly with

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**Reasoning:** The court considered the facts presented in the application and the provisions of Section

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**Interpretation:** Section 94 of the IBC allows a personal guarantor to initiate the Insolvency

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**Application:** The court found that Mr. M.Thalaimuthu Nadar, as a personal guarantor, had

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** M.Thalaimuthu…
- **Respondents:** Sunaichandran…; Indian…

## Timeline

- **2018-09-30 — Date of D…**: Date of default by the…
- **2018-10-01 — Demand N…**: Demand Notice dated…

## 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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