# In the matter of Pridhvi Assets Reconstruction and Securitization Company Ltd Vs. Kadiyala Suneetha, CP (IB)/199/95/HDB/2022

> NCLT judgment dated 2023-05-25. Citation: TCN-2023-NCLT-03197. The case involves a petition filed against a personal guarantor under Section 95 of the…

- **Court:** NCLT
- **Order date:** 25 May 2023
- **Citation:** TCN-2023-NCLT-03197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pridhvi-assets-reconstruction-and-securitization-company-ltd-vs-kadiyala-suneeth-b7e4f897

## Summary

### Background

The case involves a petition filed against a personal guarantor under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The financial creditor sought to initiate insolvency resolution against the personal guarantor. The counsel for the financial creditor requested additional time to provide proof of service of the demand notice to the personal guarantor.

## Facts

Pridhvi Asset Reconstruction and Securitisation Company Ltd, the petitioner, filed a company petition against Smt. Kadiyala Suneetha (Sri Pavana Keerthi Hotels India Pvt Ltd), the respondent, who is the personal guarantor. The financial creditor's counsel requested more time to produce proof of service of the demand notice on the personal guarantor. The postal cover addressed to the personal guarantor was returned unserved with an endorsement 'door locked'. The counsel for the personal guarantor submitted that the mandatory demand notice was not served before filing the application. The court noted that Section 95 of the IBC mandates a notice to the personal guarantor before initiating insolvency resolution proceedings.

## Issues and analysis

### Issue 1: Whether the application against the Personal Guarantor can be maintained without serving a …

**Ratio:** Section 95 of the IBC mandates that a notice must be served to the personal guarantor

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**Reasoning:** The court reasoned that the service of a demand notice to the personal guarantor is a

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**Interpretation:** Section 95 of the IBC is interpreted to mean that serving a demand notice is a

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**Application:** In this case, the court applied the ratio of Section 95 to the facts, noting

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Pridhvi Asset…; PRIDHVI ASSET…
- **Respondents:** Pavana Keerthi…; Kadiyala Su…

## Timeline

- **2023-05-25 — Hearing…**: Attendance cum order sheet of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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