# In the matter of S.Bhanumathi

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02435. The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02435
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sbhanumathi-6cd62263

## Summary

### Background

The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. Mrs. S. Bhanumathi, the applicant, who is also a personal guarantor, sought to initiate the Insolvency Resolution Process. The applicant had given a personal guarantee to Canara Bank for credit facilities availed by M/s. Srivisha Infra Private Limited, the corporate debtor. The corporate debtor failed to repay the debt, leading to the application.

## Facts

Mrs. S. Bhanumathi, acting as a personal guarantor for M/s. Srivisha Infra Private Limited (the Corporate Debtor), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process. M/s. Srivisha Infra Private Limited had taken credit facilities from Canara Bank, Egmore, Chennai, for which Mrs. S. Bhanumathi provided a personal guarantee. The Corporate Debtor defaulted on the loan, leading to the application by the personal guarantor. The amount of debt including interest and the amount of default is Rs. 1,18,28,277/-. The date of default occurred on 2022-04-29. The applicant has placed a copy of the Demand Notice dated 2022-04-30 issued by Indian Bank under Section 13(2) of the SARFAESI Act, 2002. The

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Mrs. S. Bhanumathi, under Section 94(1) of …

**Ratio:** Section 94 of the IBC provides that a debtor may apply either by himself, or jointly with

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**Reasoning:** The court observed that the Personal Guarantor himself moved the application for

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**Interpretation:** Section 94 of the IBC allows a debtor, including a personal guarantor, to

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**Application:** In this case, Mrs. S. Bhanumathi, being the personal guarantor, has directly

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Mrs.S.Bhan…
- **Respondents:** Srivisha Infra…

## Timeline

- **2022-04-29 — Date of D…**: The date on which the loan…
- **2022-04-30 — Demand N…**: Demand Notice issued by Indian Bank under…

## 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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