# In the matter of Shapoorji Pallonji Finance Private Limited vs. Rekha Singh

> NCLT judgment dated 2024-01-08. Citation: TCN-2024-NCLT-03259. The case involves an application filed by Shapoorji Pallonji Finance Private Limited…

- **Court:** NCLT
- **Order date:** 8 Jan 2024
- **Citation:** TCN-2024-NCLT-03259
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shapoorji-pallonji-finance-private-limited-vs-rekha-singh-afac5aee

## Summary

### Background

The case involves an application filed by Shapoorji Pallonji Finance Private Limited ('Creditor'/'Applicant') under Section 95 of the Insolvency and Bankruptcy Code, 2016 ('IBC'/'Code') read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate Insolvency Resolution Process against Ms. Rekha Singh ('Personal Guarantor'/'Respondent'). Rekha Singh stood as a guarantor for loans availed by M/s Jumbo Finvest (India) Limited ('Corporate Debtor'). The corporate debtor defaulted on its repayment obligations, leading to the invocation of the personal guarantee.

## Facts

Shapoorji Pallonji Finance Private Limited ('Creditor'/'Applicant') filed an application to initiate Insolvency Resolution Process against Ms. Rekha Singh ('Personal Guarantor'/'Respondent'), who acted as a personal guarantor for loans availed by M/s Jumbo Finvest (India) Limited ('Corporate Debtor'). The loan was sanctioned on 27.03.2018 with a limit of Rs. 25 crores for 36 months. The Corporate Debtor defaulted on payments, leading to the invocation of the personal guarantee. The Applicant notified the Corporate Debtor of the default on 19.12.2019. The Corporate Debtor made partial payments between 04.03.2020 and 13.03.2020. The Corporate Debtor requested a waiver of default interest on 12.05.2020. The Applicant sent notices to the Corporate Debtor and Personal

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## Issues and analysis

### Issue 1: Whether the application filed by Shapoorji Pallonji Finance Private Limited to initiate Insolvency …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, provides for the initiation of

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**Reasoning:** The Adjudicating Authority considered the application and related documents, including

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**Interpretation:** Section 95 allows a creditor to initiate insolvency proceedings against a

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**Application:** The application was filed under Section 95, and the Adjudicating Authority

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Shapoorji…
- **Respondents:** Jumbo Finvest…; REKHA S…

## Timeline

- **2018-03-27 — Loan Sanc…**: Loan sanctioned to the Corporate Debtor with…
- **2019-12-19 — Default Notif…**: Applicant notified the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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