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

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02904. This is an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mthalaimuthu-nadar-vs-indian-bank-969908b5

## Summary

### Background

This is 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/Personal Guarantor, to initiate the Insolvency Resolution Process in respect of himself, being the Personal Guarantor for M/s. Sunaichandran Mills Private Limited ('Corporate Debtor').

## Facts

Mr. M.Thalaimuthu Nadar, acting as a personal guarantor for M/s. Sunaichandran Mills Private Limited (the Corporate Debtor), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The Corporate Debtor had taken credit facilities from Indian Bank, and Mr. Nadar had provided a personal guarantee for the loan. The Corporate Debtor defaulted on the repayment of 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 U/s 13(2) of the SARFAESI Act, 2022, copy of Auction Sale Notice dated 05.05.2023 issued by Indian Bank. The documents are placed at Page 14-21. The Applicant has

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor under Section 94(1) of the Insolvency and …

**Ratio:** Section 94(1) of the IBC allows a debtor to apply for initiating an Insolvency Resolution

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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(1) of the IBC provides a mechanism for debtors, including personal

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**Application:** The application was filed by Mr. M.Thalaimuthu Nadar, the personal guarantor,

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## Parties

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

## Timeline

- **2018-09-30 — Date of D…**: The Corporate Debtor defaulted…
- **2018-10-01 — Demand N…**: Demand Notice issued by Canara Bank…

## 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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