# In the matter of Shahnaj Bano

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00122. The application is filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016 read…

- **Court:** NCLT
- **Order date:** 20 Dec 2023
- **Citation:** TCN-2023-NCLT-00122
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shahnaj-bano-5316b4be

## Summary

### Background

The application is 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. Shahnaj Bano. The prayer made is to initiate the Insolvency Resolution Process in respect of Ms. Shahnaj Bano, 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 vide loan cum hypothecation agreement dated 05.07.2013. Thereafter, the supplemental loan cum hypothecation agreement was executed on 21.05.2018 by

…

## Facts

Ms. Shahnaj Bano, as a personal guarantor for M/s Simna Exim India Pvt. Ltd. ('Corporate Debtor'), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process. The Corporate Debtor had availed term loan facilities from Bank of Baroda, including cash credit and working capital facilities. Due to unavailability of funds, the Corporate Debtor's account was classified as NPA. Recovery proceedings were initiated by Bank of Baroda under the SARFAESI Act, 2002. The amount of default of Simna Exim India Private Limited is Rs. 1,20,99,319.91/- and the amount of default of Home Loan is Rs. 59,83,680.38/-, so the total amount of default is Rs. 1,80,83,000.29/- on 09.10.2023 and the date of default

…

## Issues and analysis

### Issue 1: Whether the application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, for …

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

…

**Reasoning:** The court considered the provisions of Section 94(1) of the Code and Rule 6 of the Rules,

…

**Interpretation:** Section 94(1) of the IBC provides the legal basis for a debtor, including a

…

**Application:** The court applied the provisions of Section 94(1) and Rule 6 to the facts of

…

## Parties

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

## Timeline

- **2013-05-07 — Loan Agre…**: Corporate Debtor availed term loan facilities from Bank of Baroda vide loan cum…
- **2013-06-29 — Home Loan San…**: Debtor availed home loan from the Bank of…

## 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/shahnaj-bano-5316b4be