# In the matter of Mudraksh Investfin Pvt. Ltd. Through RP vs. Gursev Singh

> NCLT judgment dated 2024-11-14. Citation: TCN-2024-NCLT-00227. The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Nov 2024
- **Citation:** TCN-2024-NCLT-00227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mudraksh-investfin-pvt-ltd-through-rp-vs-gursev-singh-ab2e6a4f

## Summary

### Background

The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against a personal guarantor, Gursev Singh, by M/s. Mudraksh Investfin Pvt. Ltd. through its Resolution Professional (RP). The application seeks to initiate insolvency proceedings against the personal guarantor based on a default of Rupees Ten Lakhs. The applicant argues that since the default amount exceeds Rs. One Thousand, the application is maintainable. The court examines the maintainability of the application considering the threshold limits specified under the IBC for personal guarantors to corporate debtors.

## Facts

M/s. Mudraksh Investfin Pvt. Ltd. through RP filed an application under Section 95(1) of the IBC, 2016, against Gursev Singh, a personal guarantor. The amount of default is Rupees Ten Lakhs as of 15.10.2023. The debt is a secured debt, with a guarantee given to secure the loan credited to Mica Industries Limited. The applicant argued that the application is maintainable because the default amount exceeds Rs. One Thousand, as per Section 78 of the IBC for individuals. The court considered whether the threshold limit for a personal guarantor to a corporate debtor should be Rs. One Thousand or Rs. One Crore, as applicable to corporate debtors under Section 4 of the IBC. Notification No. S.O. 4126(E) dated 15.11.2019, brought certain provisions of the Code into force for

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## Issues and analysis

### Issue 1: Whether in such cases where the amount of default is less than 1 Crore, the Personal Guarantor can …

**Ratio:** The threshold limit for initiating insolvency proceedings against a personal guarantor to

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**Reasoning:** The court reasoned that when referring to a Personal Guarantor qua the Corporate Debtor,

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**Interpretation:** The court interpreted that the threshold limit for personal guarantors to

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**Application:** Since the default amount in this case was Rupees Ten Lakhs, which is less than

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** M/s. Mudraksh…
- **Respondents:** Mica Industries…; Gursev…
- **Advocates:** Harsh…; Ramneek Kau…; +2 more

## Timeline

- **2023-10-15 — Date of D…**: The amount of debt in default was…
- **2019-11-15 — Notification S.O.…**: Notification No. S.O. 4126(E) was issued, specifying the date from which certain…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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