# In the matter of Pratibha Singh

> NCLT judgment dated 2024-08-13. Citation: TCN-2024-NCLT-00825. The case involves an application filed by Mrs. Pratibha Singh, the Applicant/Personal…

- **Court:** NCLT
- **Order date:** 13 Aug 2024
- **Citation:** TCN-2024-NCLT-00825
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pratibha-singh-ce7f9954

## 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 applicant's guarantee was invoked by IndusInd Bank due to the corporate debtor's default. The Axis Bank and IndiaBulls Asset

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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. The applicant filed an application under Section 94(1) of the IBC seeking initiation of the Insolvency Resolution Process. The Resolution Professional, Mr. Sunil Kumar, was appointed and directed to file a report. The RP recommended the admission of the application. The Axis Bank sanctioned a personal loan of Rs. 3,00,000 to the applicant, who defaulted, resulting in an outstanding amount of Rs. 97,722/-. IndiaBulls Asset Reconstruction Company stated that in

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## Issues and analysis

### Issue 1: Whether the Applicant/Personal Guarantor, Mrs. Pratibha Singh, meets the requirements under Section …

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

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**Reasoning:** The court considered the Resolution Professional's report, which stated that the

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**Interpretation:** Section 94(1) is interpreted to mean that if a personal guarantor defaults on a

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**Application:** The court applied this interpretation to the facts, noting that Mrs. Pratibha

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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 was…
- **2023-09-27 — Appointment of…**: Mr. Sunil Kumar was appointed as…

## 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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