# In the matter of Punjab National Bank & Ors. vs. Mohita Indrayan & Ors.

> NCLT judgment dated 2024-08-12. Citation: TCN-2024-NCLT-00832. The case involves an application filed by Punjab National Bank and Indian Bank under Section 95…

- **Court:** NCLT
- **Order date:** 12 Aug 2024
- **Citation:** TCN-2024-NCLT-00832
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-ors-vs-mohita-indrayan-ors-96795f6a

## Summary

### Background

The case involves an application filed by Punjab National Bank and Indian Bank under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mohita Indrayan, the personal guarantor to M/s Indian Clothing League Private Limited. The corporate debtor defaulted on repayments, leading to its account being classified as NPA. Mohita Indrayan, in turn, filed an application seeking dismissal of the creditor's application, arguing that an interim moratorium was already in effect due to a Section 94 petition she had filed earlier. The Resolution Professional (RP) submitted a report recommending the admission of the Section 95 application.

## Facts

1. Punjab National Bank and Indian Bank filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mohita Indrayan, who is the personal guarantor to M/s Indian Clothing League Private Limited.
2. The Corporate Debtor, Indian Clothing League Private Limited, defaulted on repayments of cash credit facilities of Rs. 20 crore and Rs. 15 crore from Punjab National Bank and Allahabad Bank, respectively.
3. The account of the Corporate Debtor was declared as a Non-Performing Asset (NPA) in March/May 2021.
4. The total amount of debt in default is mentioned as Rs. 57.93 crore.
5. Mohita Indrayan filed a petition under Section 94 of the Code on 01.09.2022, registered as CP (IB) No.260/Chd/Hry/2022 on 28.09.2022, resulting in an interim moratorium.
6.

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## Issues and analysis

### Issue 1: Whether the Section 95 petition filed by the financial creditors should be dismissed due to the …

**Ratio:** The principle is that an interim moratorium under Section 96 of the IBC, triggered by a

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**Reasoning:** The court reasoned that allowing the moratorium to automatically prevent the Section 95

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**Interpretation:** Section 96 of the IBC provides for an interim moratorium upon the filing of an

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**Application:** In this case, the court found that the personal guarantor was using the Section

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## Parties

- **Judges:** Harnam Singh…; Ashish…
- **Appellants:** Punjab National…
- **Respondents:** Indian Clothing…; Mohita In…

## Timeline

- **2022-09-01 — Section 94 Petition…**: Mohita Indrayan filed a petition under Section 94 of the Code, registered as CP (IB)…
- **2021-03-31 — NPA Classif…**: The Corporate Debtor's…

## 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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