# In the matter of Pinki Aggarwal, CP (IB) No. 59/94/JPR/2022

> NCLT judgment dated 2023-02-06. Citation: TCN-2023-NCLT-04751. The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Feb 2023
- **Citation:** TCN-2023-NCLT-04751
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pinki-aggarwal-cp-ib-no-5994jpr2022-9673d1c5

## Summary

### Background

The case pertains to 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. Pinki Aggarwal, the applicant and personal guarantor, through Resolution Professional Mr. Arunesh Kumar Dubey. The application seeks to initiate the insolvency resolution process for Mrs. Pinki Aggarwal, who is the personal guarantor for M/s Sewa Steels Pvt. Ltd. ('Corporate Debtor'). The corporate debtor had taken loans from various lenders, including M/s Ram Alloy Castings Private Limited and HDFC Bank. The corporate debtor defaulted on repayments, leading to the initiation

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## Facts

Mrs. Pinki Aggarwal filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, as a personal guarantor to M/s Sewa Steels Pvt. Ltd. ('Corporate Debtor'). The Corporate Debtor had approached lenders, including M/s Ram Alloy Castings Private Limited, for a loan of Rs. 1,64,00,000 in 2016. Mr. Birendra Kumar, the sole working director of the Corporate Debtor, passed away on 03.05.2021 due to COVID-19, leading to the suspension of the business. The Corporate Debtor defaulted on repayments, resulting in two Company Petitions filed against it. HDFC Bank had sanctioned working capital and other loans to the Corporate Debtor, which were renewed on 05.09.2020. A credit facility of Rs. 13,50,00,000 was sanctioned, with Mrs. Pinki Aggarwal providing a

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## Issues and analysis

### Issue 1: Whether the application filed by Mrs. Pinki Aggarwal under Section 94(1) of the Insolvency and …

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

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**Reasoning:** The court reasoned that the applicant, Mrs. Pinki Aggarwal, is a personal guarantor to

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**Interpretation:** Section 94(1) provides a right to a debtor, including a personal guarantor, to

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**Application:** The court applied the provisions of Section 94(1) and Rule 6 to the facts of

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** MRS PINKI A…
- **Respondents:** M/s Sewa Steels…

## Timeline

- **2016-01-01 — Loan from M/s Ram Alloy…**: Corporate Debtor approached lenders, including M/s Ram Alloy Castings Private Limited,…
- **2021-05-03 — Death of Mr. Birendra…**: Mr. Birendra Kumar, sole working director of the Corporate Debtor, passed away due to…

## 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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