# In the matter of Mukhtyar Ali Quazi

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00121. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 20 Dec 2023
- **Citation:** TCN-2023-NCLT-00121
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mukhtyar-ali-quazi-62842cad

## Summary

### Background

The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy Rules, 2019, by the applicant, Mr. Mukhtyar Ali Quazi, who is a personal guarantor to M/s Simna Exim India Pvt. Ltd. The application seeks to initiate the Insolvency Resolution Process. The corporate debtor availed term loan facilities from Bank of Baroda amounting to Rs. 45 lakhs, followed by a supplemental agreement. Due to the impact of COVID-19, the corporate debtor availed additional working capital. The account was classified as NPA due to unavailability of funds. Recovery proceedings were initiated by Bank of Baroda under Section 13(2) of the SARFAESI Act, 2002. The corporate debtor also filed an application under Section

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## Facts

Mr. Mukhtyar Ali Quazi, a personal guarantor for M/s Simna Exim India Pvt. Ltd., filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The Corporate Debtor, M/s Simna Exim India Pvt. Ltd., had availed term loan facilities from Bank of Baroda amounting to Rs. 45 lakhs, followed by a supplemental agreement. Due to the impact of COVID-19, the corporate debtor availed additional working capital. The account was classified as NPA by Bank of Baroda on 2023-06-30 due to unavailability of funds. Recovery proceedings were initiated by Bank of Baroda under Section 13(2) of the SARFAESI Act, 2002. The corporate debtor also filed an application under Section 10 of IBC, 2016, which is pending

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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 Insolvency and Bankruptcy Code, 2016 allows a debtor to file an

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 94(1) of the IBC and the

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**Interpretation:** Section 94(1) provides the legal basis for a personal guarantor to initiate

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**Application:** The applicant, being a personal guarantor who has defaulted, is eligible to

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** MUKHTYAR AL…
- **Respondents:** M/s Simna Exim…; Bank of B…

## Timeline

- **2013-07-05 — Loan Agre…**: Corporate Debtor availed term loan facilities from Bank of Baroda amounting to Rs. 45…
- **2018-05-21 — Supplemental Loan…**: Supplemental loan cum hypothecation agreement was executed, enhancing the existing credit…

## 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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