# In the matter of Omkara Assets Reconstruction Private Limited vs. Terry Elias D'Souza

> NCLT judgment dated 2024-10-16. Citation: TCN-2024-NCLT-00410. The case involves a company petition filed by Omkara Assets Reconstruction Private Limited…

- **Court:** NCLT
- **Order date:** 16 Oct 2024
- **Citation:** TCN-2024-NCLT-00410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/omkara-assets-reconstruction-private-limited-vs-terry-elias-dsouza-a5a8ff60

## Summary

### Background

The case involves a company petition filed by Omkara Assets Reconstruction Private Limited against Mrs. Terry Elias D'Souza, who is the personal guarantor of the corporate debtor, for initiation of the Insolvency Resolution Process. The Financial Creditor invoked the personal guarantee and issued an Invocation Letter due to the corporate debtor's default. The Financial Creditor also brought to the bench's attention the demand notice dated 04.07.2016 and the deed of guarantee.

## Facts

Omkara Assets Reconstruction Private Limited filed a company petition against Mrs. Terry Elias D'Souza, the personal guarantor of a corporate debtor, seeking initiation of the Insolvency Resolution Process. The Financial Creditor invoked the personal guarantee due to the corporate debtor's default and issued an Invocation Letter. A demand notice dated 04.07.2016 was issued. The Financial Creditor claims the demand notice invoked the guarantee. The court noted that the demand notice might not have explicitly called upon the Respondent Guarantor to pay under the guarantee, but rather requested them to have the borrower compile the overdues. The petition was filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016.

## Issues and analysis

### Issue 1: Whether the demand notice dated 04.07.2016 effectively invoked the personal guarantee of Mrs. Terry …

**Ratio:** A demand notice must clearly and unequivocally demand payment from the guarantor based on

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**Reasoning:** The court observed that the demand notice dated 04.07.2016 might not have explicitly

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**Interpretation:** The interpretation of the demand notice is crucial. If the notice merely

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**Application:** In this case, the court needs to determine whether the language used in the

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## Parties

- **Judges:** SH. PRABHAT…; V.G. B…
- **Appellants:** Omkara Assets…
- **Respondents:** Terry Elias…

## Timeline

- **2016-07-04 — Demand Noti…**: Demand notice issued to Mrs. Terry…
- **2024-10-16 — Order Shee…**: Court hearing and order to admit the company petition, appoint Resolution Professional,…

## 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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