# In the matter of Nirmala Rangachari vs. Indian Bank

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02898. The case involves an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nirmala-rangachari-vs-indian-bank-71be0d88

## Summary

### Background

The case involves an application 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 Mrs. Nirmala Rangachari, a personal guarantor to M/s. Hitro Energy Solutions Pvt. Ltd. The application seeks to initiate the Insolvency Resolution Process against Mrs. Nirmala Rangachari in her capacity as a personal guarantor.

## Facts

Mrs. Nirmala Rangachari, the applicant, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process as a personal guarantor to the Corporate Debtor, M/s. Hitro Energy Solutions Pvt. Ltd. M/s. Hitro Energy Solutions Pvt. Ltd. had taken credit facilities from Indian Bank, the respondent. Mrs. Rangachari had provided a personal guarantee for the loan. The Corporate Debtor defaulted on the repayment of the debt. The amount of default is Rs. 3,00,53,741.61/-, and the date of default is 12.11.2021. Indian Bank issued a Demand Notice dated 21.09.2023 under Section 13(2) of the SARFAESI Act, 2022, and a Symbolic Possession Notice dated 20.12.2023. The applicant has placed documents at Page 16-33

…

## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Mrs. Nirmala Rangachari, under Section …

**Ratio:** Section 94 of the IBC provides that a debtor may apply either by himself, or jointly with

…

**Reasoning:** The court considered the application filed by the personal guarantor and the documents

…

**Interpretation:** Section 94 of the IBC allows a debtor, including a personal guarantor, to

…

**Application:** The court applied Section 94 of the IBC to the facts of the case, where the

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Nirmala Ran…
- **Respondents:** M/s. Hitro Energy…; Indian…

## Timeline

- **2021-11-12 — Date of D…**: The Corporate Debtor defaulted…
- **2023-09-21 — Demand N…**: Indian Bank issued a Demand Notice under…

## 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/nirmala-rangachari-vs-indian-bank-71be0d88