# In the matter of Prabha Agarwal, CP (IB) No. 60/94(1)/JPR/2021

> NCLT judgment dated 2022-01-31. Citation: TCN-2022-NCLT-04309. The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 Jan 2022
- **Citation:** TCN-2022-NCLT-04309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prabha-agarwal-cp-ib-no-60941jpr2021-a1c31393

## 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 Prabha Agarwal, the applicant/personal guarantor. The application seeks to initiate the insolvency resolution process in respect of Prabha Agarwal, who is the personal guarantor for Airen Metals Private Limited ('AMPL') and Airen Copper Private Limited ('ACPL'), the corporate debtors. Applications for Corporate Insolvency Resolution Process ('CIRP') of the Corporate Debtors are pending before the Adjudicating Authority. The Corporate Debtors allegedly failed to fulfill their

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## Facts

Prabha Agarwal, 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 Airen Metals Private Limited ('AMPL') and Airen Copper Private Limited ('ACPL'), both referred to as 'Corporate Debtors'. The CIRP applications for these corporate debtors are already pending before the Adjudicating Authority. The Corporate Debtors have allegedly defaulted on their financial obligations to various creditors, including Union Bank of India ('UBI'), Bank of Baroda ('BOB'), Yes Bank Ltd. ('YBL'), TATA Capital Financial Services Ltd. ('TCFSL'), Aditya Birla Finance Ltd. ('ABFL'), and Axis Bank Ltd. ('ABL'). UBI issued a demand notice to the applicant under

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Prabha Agarwal, under Section 94(1) of the …

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

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**Reasoning:** The court considered the submissions and the documents filed by the applicant and

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

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**Application:** The court applied Section 94(1) to the facts of the case, noting that Prabha

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## Parties

- **Judges:** Deep Chandr…; RaghuNa…
- **Appellants:** Prabha Ag…
- **Respondents:** Airen Metals…
- **Advocates:** Rajesh Kumar…; Anant G…; +2 more

## Timeline

- **2020-11-30 — Legal Notice…**: TATA Capital Financial Services Ltd. (TCFSL) sent a legal notice to AMPL and the…
- **2020-12-12 — Legal Notice…**: Aditya Birla Finance Ltd. (ABFL) sent a…

## 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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