# 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-02553. The case involves an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02553
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mr-amar-baldva-cp-ib-no-32941jpr2022-90154b46

## Summary

### Background

The case involves an application 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 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 has defaulted on obligations pursuant to a personal guarantee given to the corporate debtor. The financial creditor, Punjab National Bank, had advanced a loan to the Corporate Debtor and subsequently issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, due to the

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## Facts

Mr. Amar Baldva, acting as a personal guarantor for M/s Baldva Textiles Pvt. Ltd. ('Corporate Debtor'), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency resolution process. Punjab National Bank, the Financial Creditor, had extended a loan to the Corporate Debtor. Upon default by the Corporate Debtor, the Financial Creditor issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 2021-04-27. The amount of default was stated to be Rs. 16,73,10,124/- as of 2021-06-27. The Adjudicating Authority had previously admitted an application under Section 9 of the Code for Corporate Insolvency Resolution Process (‘CIRP') against the Corporate Debtor. The applicant failed to fulfill his

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## Issues and analysis

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

**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 determined that the application complied with the requirements

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**Interpretation:** Section 94(1) provides a mechanism for debtors, including personal guarantors

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**Application:** The applicant, Mr. Amar Baldva, being a personal guarantor in default, was

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **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 was…

## 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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