# In the matter of Punjab National Bank vs. Kunal Jain

> NCLT judgment dated 2024-02-12. Citation: TCN-2024-NCLT-02632. Punjab National Bank, a financial creditor, filed an application under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 12 Feb 2024
- **Citation:** TCN-2024-NCLT-02632
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-vs-kunal-jain-b0225640

## Summary

### Background

Punjab National Bank, a financial creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Kunal Jain, the personal guarantor of the corporate debtor, M/s Magppie International Limited. The application was filed due to the corporate debtor's inability to fulfill its financial obligations, leading the creditor to pursue the guarantor for recovery.

## Facts

Punjab National Bank (PNB) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Insolvency Resolution Process (IRP) against Mr. Kunal Jain, who is the personal guarantor for M/s Magppie International Limited, the corporate debtor. PNB is the financial creditor. The application was filed because M/s Magppie International Limited defaulted on its financial obligations. The applicant has proposed Mr. Deepak Mittal as the Resolution Professional. The Adjudicating Authority has confirmed that a copy of the application has been served to both the personal guarantor and the corporate debtor. The Supreme Court has ruled that no judicial adjudication is required at the stages envisaged in Sections 95-99 of the IBC.

## Issues and analysis

### Issue 1: Whether the application filed by Punjab National Bank under Section 95(1) of the Insolvency and …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate

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**Reasoning:** The court considered the application filed by Punjab National Bank and noted that it was

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**Interpretation:** Section 95(1) of the IBC is interpreted to provide a mechanism for creditors to

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**Application:** In this case, Punjab National Bank, as a financial creditor, has the right to

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** Punjab National…
- **Respondents:** M/s Magppie…; Kunal…

## Timeline

- **2023-01-01 — Filing of App…**: Punjab National Bank filed an application under Section 95(1) of the Insolvency and…
- **2024-02-12 — Order of Adjudicating…**: The Adjudicating Authority appointed Mr. Deepak Mittal as the Resolution Professional and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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