# In the matter of Pradeep Kumar Jain Vs. Union Bank, CP (IB) No. 693/ND/2022

> NCLT judgment dated 2022-12-22. Citation: TCN-2022-NCLT-00065. The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Dec 2022
- **Citation:** TCN-2022-NCLT-00065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pradeep-kumar-jain-vs-union-bank-cp-a7e0dac6

## Summary

### Background

The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, by Pradeep Kumar Jain, a personal guarantor to M/s Mittal Lumber Private Limited and M/s Jain Timber Co. Private Limited. The application seeks initiation of the insolvency resolution process against himself. The creditor, Union Bank, was duly served. The corporate applicants and the personal guarantor failed to repay a combined debt of INR 14,96,89,303.88.

## Facts

Pradeep Kumar Jain, acting as a personal guarantor for M/s Mittal Lumber Private Limited and M/s Jain Timber Co. Private Limited, filed a petition under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of insolvency resolution process against himself. Union Bank, the creditor, was duly served. The corporate applicants and the personal guarantor failed to repay a combined debt of INR 14,96,89,303.88. The application was filed due to the failure to repay the debt. The interim moratorium commenced from 07.09.2022.

## Issues and analysis

### Issue 1: Whether the petition filed by the personal guarantor under Section 94(1) of the Insolvency and …

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

…

**Reasoning:** The court considered the application filed under Section 94(1) of the IBC, 2016, read

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**Interpretation:** Section 94(1) provides a mechanism for personal guarantors to initiate

…

**Application:** The personal guarantor, Pradeep Kumar Jain, filed the petition under Section

…

## Parties

- **Judges:** TELAPROLU…; RAHUL BHA…
- **Appellants:** Pradeep Kum…
- **Respondents:** M/s Mittal Lumber…; Union…

## Timeline

- **2022-09-20 — Service of…**: The Creditor of the Corporate Applicants, the respondent herein, was duly served by the…
- **2022-09-07 — Date of Appl…**: The interim moratorium in terms of Sec 96(1)(a) of IBC, 2016 shall commence from the date…

## 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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