# In the matter of Navdeep Singh Shekhawat vs. Oriental Bank of Commerce

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02115. The application is filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/navdeep-singh-shekhawat-vs-oriental-bank-of-commerce-63b4c161

## Summary

### Background

The application is 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 Navdeep Singh Shekhawat, the Applicant/Personal Guarantor. The applicant seeks to initiate the Insolvency Resolution Process in respect of himself, being the Personal Guarantor for M/s Super Choco Food LLP ('Corporate Debtor').

## Facts

Navdeep Singh Shekhawat, acting as the personal guarantor for M/s Super Choco Food LLP (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 availed credit facilities from Punjab National Bank (PNB), including a Term Loan of Rs. 3.75 Crores and a Cash Credit facility of Rs. 1 Crore. Due to a lack of funds, the Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.10.2017. PNB initiated recovery proceedings and issued notices under Section 13(2) of the SARFAESI Act, 2002, on 07.11.2017. PNB took possession of the Corporate Debtor's immovable property on 15.02.2018 and subsequently published auction sale

…

## Issues and analysis

### Issue 1: Whether the application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016 is …

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

…

**Reasoning:** The Adjudicating Authority noted that the application was filed under Section 94(1) of

…

**Interpretation:** Section 94(1) provides the legal basis for a debtor, including a personal

…

**Application:** The Adjudicating Authority applied the provisions of Section 94(1) and Section

…

## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** NAVDEEP SINGH…
- **Respondents:** M/s Super Choco…; Oriental Bank of…

## Timeline

- **2015-10-06 — Loan cum Hypothecation…**: Corporate Debtor availed Term Loan…
- **2015-10-06 — Supplemental Loan cum…**: Corporate Debtor availed Additional Financial Facility in the form of Cash 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/navdeep-singh-shekhawat-vs-oriental-bank-of-commerce-63b4c161