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

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03921. The case pertains to an application filed by Rare Asset Reconstruction Limited (Financial…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03921
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rare-asset-reconstruction-ltd-vs-sukesh-gupta-4e7513e4

## Summary

### Background

The case pertains to an application filed by Rare Asset Reconstruction Limited (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 Sukesh Gupta, the Personal Guarantor of M/s. MBS Impex Private Limited (Corporate Debtor). The Corporate Debtor had availed working capital facilities from ICICI Bank, and Sukesh Gupta stood as guarantor, executing guarantee agreements dated 09.02.2011. ICICI Bank assigned its rights to the Financial Creditor on 26.08.2022. The Financial Creditor issued a demand

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## Facts

ICICI Bank extended working capital facilities to M/s. MBS Impex Private Limited (Corporate Debtor). Shri Sukesh Gupta stood as a personal guarantor for these facilities, executing guarantee agreements dated 09.02.2011. The Corporate Debtor defaulted on the repayment of the loan. ICICI Bank assigned its rights and interests to Rare Asset Reconstruction Limited (Financial Creditor) on 26.08.2022. The Financial Creditor issued a demand notice to the personal guarantor on 17.12.2021, but the guarantor failed to pay the outstanding amounts. The Financial Creditor then filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process against the personal guarantor. The respondent argued that the

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## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation and application of Section 95 and Section 100 of

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**Reasoning:** The court reasoned that the Resolution Professional's report recommended the admission of

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**Interpretation:** The interpretation involves understanding the scope and applicability of

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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:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** RARE Asset…
- **Respondents:** M/s.MBS Impex…; Sukesh…
- **Advocates:** Dishit Bhattacharj…; Herur Rajes…

## Timeline

- **2011-02-09 — Guarantee Agr…**: Sukesh Gupta executed…
- **2019-11-13 — CIRP initiated against…**: Corporate Insolvency Resolution Process…

## 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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