# In the matter of Punjab National Bank Vs. Pramod Chandra Rath, CP (IB) No. 52/CB/2022

> NCLT judgment dated 2023-05-09. Citation: TCN-2023-NCLT-03430. This case involves an application filed by Punjab National Bank (PNB) under Section 95 of the…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03430
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-vs-pramod-chandra-rath-cp-0ab2576a

## Summary

### Background

This case involves an application filed by Punjab National Bank (PNB) under Section 95 of the Insolvency and Bankruptcy Code (IBC) 2016, seeking to initiate the Insolvency Resolution Process against Mr. Pramod Chandra Rath, the personal guarantor, for loans availed by M/s MAADURGA THERMAL POWER COMPANY LIMITED. The corporate debtor, Maa Durga Thermal Power Company Ltd, was already admitted into Corporate Insolvency Resolution Process (CIRP) on 08.06.2018, and subsequently into liquidation on 25.06.2019. PNB, being the financial creditor, claims that the personal guarantor defaulted on the repayment of dues amounting to Rs. 128.56 crores as of 30.09.2022, leading to the application for initiating insolvency proceedings against the personal guarantor.

## Facts

Punjab National Bank (PNB) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) 2016 against Mr. Pramod Chandra Rath, who acted as a personal guarantor for loans availed by M/s MAADURGA THERMAL POWER COMPANY LIMITED. The corporate debtor, Maa Durga Thermal Power Company Ltd, had already undergone Corporate Insolvency Resolution Process (CIRP) and was subsequently liquidated. The corporate debtor was admitted into CIRP on 08.06.2018 under section 7 of IBC2016. PNB claimed that the personal guarantor defaulted on payments, with outstanding dues amounting to Rs. 128.56 crores as of 30.09.2022. PNB issued a demand notice dated 26.10.2022 under Section 95(4)(b) of IBC 2016. The account of the principal borrower was declared as NPA on 31.12.2014.

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 against …

**Ratio:** Section 95 of the IBC allows a creditor to file an application for initiating the

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**Reasoning:** The court noted that the application was complete in all respects and that the copy of

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The court found that PNB's application met the requirements of Section 95 and

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Punjab National…
- **Respondents:** M/s MAADURGA…; Pramod Chandra…

## Timeline

- **2018-06-08 — CIRP Admi…**: Maa Durga Thermal Power Company Ltd admitted…
- **2019-06-25 — Liquidation…**: Maa Durga Thermal Power Company…

## 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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