# In the matter of Mrs. Jyoti Soni, CP (IB) - 110(PB)/2021

> NCLT judgment dated 2022-03-21. Citation: TCN-2022-NCLT-03662. The case pertains to an application filed by Mrs. Jyoti Soni, the Applicant/Debtor, under…

- **Court:** NCLT
- **Order date:** 21 Mar 2022
- **Citation:** TCN-2022-NCLT-03662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mrs-jyoti-soni-cp-ib-110pb2021-5f9fc61c

## Summary

### Background

The case pertains to an application filed by Mrs. Jyoti Soni, the Applicant/Debtor, 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. The application seeks to initiate the Insolvency Resolution Process against the Applicant/Debtor, who is the Personal Guarantor of M/s. Bank of India and other Banks, in relation to defaults made against credit facilities extended by the Bank in favor of M/s Mohan Gems and Jewels Private Limited, the Corporate Debtor. The Corporate Debtor had availed working capital facilities by executing a Consortium Arrangement dated 05.06.2015 with Bank

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## Facts

Mrs. Jyoti Soni, the Applicant/Debtor, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. She is the personal guarantor for credit facilities extended to M/s Mohan Gems and Jewels Private Limited, the Corporate Debtor, by Bank of India and other banks. The Corporate Debtor availed working capital facilities through a Consortium Arrangement dated 05.06.2015. The Corporate Debtor defaulted on repayments, leading to its account being declared as a Non-Performing Asset (NPA) on 29.11.2015. The Applicant/Debtor stood as a guarantor to secure the credit facilities. The Corporate Debtor's CIR process was initiated on 25.09.2018, and liquidation proceedings were initiated on 09.08.2018.

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## Issues and analysis

### Issue 1: Whether the application filed by Mrs. Jyoti Soni, the personal guarantor, under Section 94(1) of …

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

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**Reasoning:** The court considered the application filed by Mrs. Jyoti Soni, the personal guarantor,

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

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**Application:** The court applied Section 94(1) to the facts of the case, where Mrs. Jyoti

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## Parties

- **Judges:** Ramalingam…; HEMANT KUMAR…
- **Respondents:** M/s. Mohan Gems &…; M/s Mohan Gems…

## Timeline

- **2015-06-05 — Consortium Arr…**: The Corporate Debtor executed a Consortium…
- **2015-11-29 — Account Decla…**: The account of the Corporate Debtor 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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