# 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-03434. The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03434
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punjab-national-bank-vs-pramod-chandra-rath-cp-f2ec2ec5

## Summary

### Background

The case pertains to an application filed under Section 95 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 Debtors) Rules, 2019, by Punjab National Bank against Mr. Pramod Chandra Rath, the personal guarantor for loans availed by M/s MAADURGA THERMAL POWER COMPANY LIMITED. The corporate debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 08.06.2018 under section 7 of IBC2016 by an application filed by SREI Equipment Finance Limited by NCLT-Kolkata and subsequently admitted into liquidation on 25.06.2019. Punjab National Bank seeks to initiate the Insolvency Resolution Process against the

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## Facts

Punjab National Bank (PNB) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) 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, was admitted into Corporate Insolvency Resolution Process (CIRP) on 08.06.2018 and subsequently into liquidation on 25.06.2019. PNB claims that the principal borrower defaulted in repayment, leading to the account being classified as a Non-Performing Asset (NPA) on 31.12.2014. A demand notice was issued to the personal guarantor on 26.10.2022, demanding payment of Rs. 128.56 Crores as of 30.09.2022. The guarantor allegedly failed to repay the outstanding dues. The corporate

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## Issues and analysis

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

**Ratio:** The limitation period for filing an application under Section 95 of IBC is three years

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**Reasoning:** The court considered the acknowledgement of debt by the corporate debtor on 31.03.2018.

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**Interpretation:** The court interpreted the provisions of the Limitation Act, the Insolvency and

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

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

## Timeline

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