# In the matter of Mr. Amar Baldva, CP (IB) No. 32/94(1)/JPR/2022

> NCLT judgment dated 2022-05-30. Citation: TCN-2022-NCLT-02547. The case pertains to an application filed under Section 94 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02547
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mr-amar-baldva-cp-ib-no-32941jpr2022-660ab77b

## Summary

### Background

The case pertains to an application filed under Section 94 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 Debtors) Rules, 2019, by Mr. Amar Baldva, the Applicant/Debtor, who is a personal guarantor for M/s Baldva Textiles Pvt. Ltd. ('Corporate Debtor'). The application seeks to initiate the insolvency resolution process. The applicant defaulted on obligations pursuant to a personal guarantee given to the corporate debtor. A CIRP was initiated against the Corporate Debtor in CP No. (IB)-28/9/JPR/2021.

## Facts

Mr. Amar Baldva, acting as a personal guarantor for M/s Baldva Textiles Pvt. Ltd. ('Corporate Debtor'), filed an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency resolution process. A loan was advanced to the Corporate Debtor by Punjab National Bank ('Financial Creditor'). The Corporate Debtor defaulted, leading the Financial Creditor to issue a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 2021-04-27. The amount of default was Rs. 16,73,10,124/-, with the date of default being 2021-06-27. Previously, an application under Section 9 of the Code was admitted against the Corporate Debtor, leading to the initiation of Corporate Insolvency Resolution Process (‘CIRP') in CP No. (IB)-28/9/JPR/2021.

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## Issues and analysis

### Issue 1: Whether the application filed by Mr. Amar Baldva, as a personal guarantor, under Section 94 of the …

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

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**Reasoning:** The Adjudicating Authority considered the applicant's failure to fulfill obligations

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**Interpretation:** Section 94(1) provides the legal basis for a debtor, including a personal

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**Application:** The applicant, being a personal guarantor who defaulted on obligations, is

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## Parties

- **Judges:** Deep Chandr…; RaghuNa…
- **Appellants:** Amar Ba…
- **Respondents:** M/s Baldva…; Punjab National…

## Timeline

- **2021-04-27 — Demand N…**: Financial Creditor published a demand notice in newspaper under Section 13(2) of the…
- **2021-06-27 — Date of D…**: The date of default…

## 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)

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