# In the matter of Punjab National bank Vs. Mr. Motilal Dugar, C.P.(IB)/644(KB)2020

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04037. The case pertains to an application filed by Punjab National Bank under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 21 Feb 2022
- **Citation:** TCN-2022-NCLT-04037
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-vs-mr-motilal-dugar-cp-4b583f67

## Summary

### Background

The case pertains to an application filed by Punjab National Bank under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Motilal Dugar, the personal guarantor to Kohinoor Steels Pvt. Ltd. The application was filed due to the credit facilities extended by the bank in favor of KSPL.

## Facts

Punjab National Bank filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Motilal Dugar, who is the personal guarantor to Kohinoor Steels Pvt. Ltd. (KSPL). The application was filed due to credit facilities extended by the bank to KSPL. The Adjudicating Authority appointed Mr. Sajjan Kumar Dokania as the Resolution Professional. The Resolution Professional submitted a report recommending the admission of the application, stating that it satisfied the requirements of Section 95 of the IBC, 2016. The Resolution Professional sent notices to Mr. Dugar but received no response. The personal guarantee agreement dated 2015-06-29 was not cancelled. The Adjudicating Authority admitted the

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## Issues and analysis

### Issue 1: Whether the application filed by Punjab National Bank under Section 95(1) of the IBC, 2016, should …

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

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**Reasoning:** The Adjudicating Authority relied on the report submitted by the Resolution Professional,

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**Interpretation:** The interpretation of Section 95(1) and Section 100 of the IBC, 2016, is that

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**Application:** In this case, Punjab National Bank filed an application against Mr. Motilal

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** Kohinoor Steels…; MOTILAL…
- **Advocates:** Ramesh Chandra…; Akash B…

## Timeline

- **2021-09-20 — Appointment of…**: The Adjudicating Authority appointed Mr. Sajjan Kumar Dokania as the Resolution…
- **2022-02-11 — Order Res…**: The order was reserved…

## 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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