# In the matter of RARE Asset Reconstruction Ltd. vs. Anurag Gupta

> NCLT judgment dated 2023-05-03. Citation: TCN-2023-NCLT-03487. The case pertains to a petition filed by ICICI Bank Limited, the financial creditor, under…

- **Court:** NCLT
- **Order date:** 3 May 2023
- **Citation:** TCN-2023-NCLT-03487
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rare-asset-reconstruction-ltd-vs-anurag-gupta-3d5f2bbb

## Summary

### Background

The case pertains to a petition filed by ICICI Bank Limited, the financial creditor, 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, seeking initiation of the Insolvency Resolution Process against Anurag Gupta, the personal guarantor of M/s. MBS Impex Private Limited, the corporate debtor. The corporate debtor had availed working capital facilities from ICICI Bank, and Anurag Gupta stood as guarantor, executing guarantee agreements dated 09.02.2011. The corporate debtor defaulted on payments, leading the financial creditor to file Original Applications before the Debt

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## Facts

ICICI Bank Limited extended working capital facilities, including overdraft and SBLC/BG, to M/s. MBS Impex Private Limited. Anurag Gupta acted as a personal guarantor for these facilities, executing guarantee agreements on February 9, 2011. M/s. MBS Impex Private Limited defaulted on its repayment obligations. ICICI Bank Limited and its associated banks initiated recovery proceedings before the Debt Recovery Tribunal (DRT). The DRT issued a decree and recovery certificate directing the corporate debtor and guarantors to pay the outstanding amount within 30 days, but they failed to comply. ICICI Bank Limited assigned its rights and interests in the financial assistance to Rare Asset Reconstruction Limited on August 26, 2022. Rare Asset Reconstruction Limited issued a

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## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the financial creditor's application, the

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**Interpretation:** The interpretation of Section 95 and Section 100 of the IBC, 2016, involves

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**Application:** In this case, the Adjudicating Authority applied the provisions of Section 95

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** RARE Asset…
- **Respondents:** M/s.MBS Impex…; Anurag…

## Timeline

- **2011-02-09 — Guarantee Agreements…**: Anurag Gupta executed guarantee agreements in favor of ICICI Bank Limited for the…
- **2016-09-26 — DRT Issues Recovery…**: Debt Recovery Tribunal (DRT), Hyderabad, issued a recovery certificate against the…

## 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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