# In the matter of Mukhtyar Ali Quazi

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00108. 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-00108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mukhtyar-ali-quazi-68ae7776

## 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 (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) 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.

## Facts

Mr. Mukhtyar Ali Quazi, as 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. M/s Simna Exim India Pvt. Ltd. had availed term loan facilities amounting to Rs. 45 lakhs from Bank of Baroda, followed by a supplemental loan. Due to the impact of COVID-19, the Corporate Debtor availed a working capital facility of Rs. 27 lakhs. The Corporate Debtor's account was classified as NPA on 2023-06-30 due to unavailability of funds. The applicant also availed working capital facility from Bank of Baroda as the proprietor of Aamna Enterprises. Recovery proceedings were initiated by Bank of Baroda, and a notice under Section 13(2) of the

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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 apply for

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**Reasoning:** The court determined that the applicant, being a personal guarantor to a corporate

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**Interpretation:** Section 94(1) is interpreted to include personal guarantors to corporate

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**Application:** The applicant, Mr. Mukhtyar Ali Quazi, being a personal guarantor to M/s Simna

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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 amounting to Rs. 45 lakhs from Bank of…
- **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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