# In the matter of S.Bhanumathi

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02415. The application, CP(IB)/216/(CHE)/2023, was filed under Section 94(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02415
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sbhanumathi-c07ac328

## Summary

### Background

The application, CP(IB)/216/(CHE)/2023, was 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 and personal guarantor, sought to initiate the Insolvency Resolution Process. The corporate debtor is M/s. Srivisha Infra Private Limited, which had taken credit facilities from Canara Bank, Egmore, Chennai. Mrs. Bhanumathi had given a personal guarantee for the loan, and 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 obtained credit facilities from Canara Bank, Egmore, Chennai, for which Mrs. Bhanumathi provided a personal guarantee. The corporate debtor defaulted on the loan repayment. The applicant has given the particulars of debt including interest as Rs.1,18,28,277/-. The date of default occurred as on 2022-04-29. A demand notice dated 2022-04-30 was issued by Indian Bank under Section 13(2) of the SARFAESI Act, 2002. The applicant has proposed Mr. Madhu Desikan as the Resolution Professional.

## Issues and analysis

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

**Ratio:** Section 94(1) of the IBC, 2016, allows a debtor to apply for initiating an Insolvency

…

**Reasoning:** The court observed that the personal guarantor had moved the application for initiation

…

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

…

**Application:** The court applied Section 94(1) to the facts of the case, where Mrs. S.

…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sbhanumathi-c07ac328