# In the matter of Samjida Bano Quazi, {CP IB No. 76/94(1)/JPR/2023]

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00106. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 20 Dec 2023
- **Citation:** TCN-2023-NCLT-00106
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/samjida-bano-quazi-cp-ib-no-76941jpr2023-20336e84

## Summary

### Background

The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, by the Applicant/Personal Guarantor, Ms. Samjida Bano Quazi. The prayer was to initiate the Insolvency Resolution Process in respect of Ms. Samjida Bano Quazi, being the Personal Guarantor for M/s Simna Exim India Pvt. Ltd. (‘Corporate Debtor’). The Corporate Debtor availed term loan facilities in the form of cash credit amounting to Rs. 45 lakhs from Bank of Baroda ('BoB') vide loan cum hypothecation agreement dated 05.07.2013. A supplemental loan cum hypothecation agreement was executed on

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## Facts

Ms. Samjida Bano Quazi, acting as a personal guarantor for M/s Simna Exim India Pvt. Ltd. (the Corporate Debtor), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The Corporate Debtor had availed various loan facilities from Bank of Baroda, including a term loan of Rs. 45 lakhs and a working capital facility of Rs. 27 lakhs. Due to financial difficulties exacerbated by COVID-19, the Corporate Debtor's account was classified as a Non-Performing Asset (NPA) by the Bank of Baroda. Recovery proceedings were initiated by the bank under Section 13(2) of the SARFAESI Act, 2002. The Corporate Debtor also filed an application under Section 10 of the IBC, which is currently pending

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Ms. Samjida Bano Quazi, under Section …

**Ratio:** Section 94(1) of the Insolvency and Bankruptcy Code, 2016, allows a debtor to file an

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**Reasoning:** The court determined that the applicant, being a personal guarantor to the Corporate

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**Interpretation:** Section 94(1) of the IBC provides a mechanism for individuals, including

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**Application:** The applicant, Ms. Samjida Bano Quazi, is a personal guarantor to the Corporate

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** SAMJIDA BAN…
- **Respondents:** M/s Simna Exim…; Bank of B…

## Timeline

- **2013-07-05 — Term Loan F…**: Corporate Debtor availed term loan facilities amounting to Rs. 45 lakhs from Bank of…
- **2017-06-21 — Working Capital…**: Debtor availed working capital facility from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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