# In the matter of Pratibha Singh

> NCLT judgment dated 2024-08-13. Citation: TCN-2024-NCLT-00818. The case involves an application filed by Mrs. Pratibha Singh, the Applicant/Personal…

- **Court:** NCLT
- **Order date:** 13 Aug 2024
- **Citation:** TCN-2024-NCLT-00818
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pratibha-singh-1460ae94

## Summary

### Background

The case involves an application filed by Mrs. Pratibha Singh, the Applicant/Personal Guarantor, under Section 94(1) of the Insolvency and Bankruptcy Code (IBC) 2016, in CP No. (IB)-55/94(1)/JPR/2022. The application seeks initiation of the Insolvency Resolution Process (IRP) against the Applicant, who is the Personal Guarantor of the Corporate Debtor, M/s Neo Aid Communication (India) Private Limited, for an amount of Rs. 2,11,66,191/-. The Resolution Professional (RP), Mr. Sunil Kumar, was appointed and directed to file a report under Section 99 of the IBC. The RP filed IA(IBC)No. 562/JPR/2023 recommending the admission of the application. The application is based on the invocation of a personal guarantee for a loan availed by the Corporate Debtor from IndusInd Bank,

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## Facts

Mrs. Pratibha Singh, the applicant, is the personal guarantor for a loan availed by the corporate debtor, M/s Neo Aid Communication (India) Private Limited, from IndusInd Bank. The loan amount is Rs. 2,11,66,191/-. The corporate debtor defaulted on the loan, leading IndusInd Bank to invoke the personal guarantee. This invocation was done through a notice issued under Section 13(2) of the SARFAESI Act, 2002. Mrs. Singh then filed an application under Section 94(1) of the IBC seeking initiation of the Insolvency Resolution Process (IRP). The Resolution Professional (RP), Mr. Sunil Kumar, was appointed and submitted a report recommending the admission of the application. The RP's report confirmed that Mrs. Singh meets the criteria under Section 94(1) of the IBC and does

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## Issues and analysis

### Issue 1: Whether the application filed by the Personal Guarantor, Mrs. Pratibha Singh, under Section 94(1) …

**Ratio:** Section 94(1) of the IBC allows a debtor to apply for initiation of insolvency resolution

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**Reasoning:** The Adjudicating Authority considered the report of the Resolution Professional, which

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**Interpretation:** Section 94(1) provides the legal basis for a personal guarantor to initiate

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**Application:** The ratio and reasoning are applied to the facts of the case, where the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Pratibha…
- **Respondents:** M/s Neo Aid…; Ratnesh S…

## Timeline

- **2022-01-01 — CP No. (IB)-55/94(1)/JPR…**: CP No. (IB)-55/94(1)/JPR/2022…
- **2023-01-01 — IA(IBC) No. 562…**: IA(IBC) No. 562/JPR/2023 filed by the RP…

## 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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