# In the matter of Madhur Jindal,CP (IB) No. 40/94(1)/JPR/2021

> NCLT judgment dated 2022-01-25. Citation: TCN-2022-NCLT-04364. The case involves an application under Section 98(1) of the IBC, 2016, concerning a personal…

- **Court:** NCLT
- **Order date:** 25 Jan 2022
- **Citation:** TCN-2022-NCLT-04364
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhur-jindalcp-ib-no-40941jpr2021-ffb80780

## Summary

### Background

The case involves an application under Section 98(1) of the IBC, 2016, concerning a personal guarantor, Mr. Madhur Jindal, who filed a CP. A query was raised regarding whether a CP could be filed by a Personal Guarantor for two separate Corporate Debtors. This issue was previously clarified in another matter related to other Personal Guarantors of Aarti Suitings Private Limited and Adig Jemtex Private Limited. The applicant sought to withdraw the CP, and the court had previously ordered that appropriate steps be taken for the withdrawal.

## Facts

Mr. Madhur Jindal, acting as a personal guarantor, filed a CP. A query arose regarding the permissibility of a personal guarantor filing a CP for two separate corporate debtors, namely Aarti Suitings Private Limited and Adig Jemtex Private Limited. The applicant sought a change of Resolution Professional, and the court considered this request. The applicant was directed to file additional documents, including an affidavit confirming compliance with Section 94(4) of the IBC, and to serve a copy of the application to the IBBI. The relevance of the facts lies in the procedural compliance required under the IBC for personal guarantors and the substitution of resolution professionals.

## Issues and analysis

### Issue 1: Whether the prayer of the Applicant for change of Resolution Professional in accordance with …

**Ratio:** Section 98(1) of the IBC allows for the

…

**Reasoning:** The court considered the applicant's request for a change of Resolution Professional and

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**Interpretation:** Section 98(1) provides the legal basis for the Adjudicating Authority to allow

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**Application:** The court applied Section 98(1) to the specific facts of the case, allowing the

…

## Parties

- **Judges:** Deep Chandr…; RaghuNa…
- **Appellants:** Madhur Jindal…
- **Respondents:** Aarti Suitings…

## Timeline

- **2021-08-17 — Previous…**: The Applicant had submitted that appropriate steps would be taken for withdrawal of the…
- **2022-01-25 — Order Da…**: Order issued allowing the change of Resolution Professional and directing the filing of…

## 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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