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

> NCLT judgment dated 2024-01-08. Citation: TCN-2024-NCLT-03245. The application was filed by Shapoorji Pallonji Finance Private Limited…

- **Court:** NCLT
- **Order date:** 8 Jan 2024
- **Citation:** TCN-2024-NCLT-03245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shapoorji-pallonji-finance-private-limited-vs-siddharth-singh-cef5ba27

## Summary

### Background

The application was filed by Shapoorji Pallonji Finance Private Limited ('Creditor'/'Applicant') to initiate the Insolvency Resolution Process against Mr. Siddharth Singh ('Personal Guarantor'/'Respondent'). The Personal Guarantor had provided a personal guarantee to secure financial assistance availed by Jumbo Finvest (India) Limited ('Corporate Debtor'). The Corporate Debtor defaulted on repayment, leading to the invocation of the personal guarantee. The Applicant filed the application under Section 95 of the Insolvency and Bankruptcy Code, 2016, 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.

## Facts

Shapoorji Pallonji Finance Private Limited ('Applicant') filed an application to initiate the Insolvency Resolution Process against Mr. Siddharth Singh ('Personal Guarantor'/'Respondent'). Mr. Singh had provided a personal guarantee for loans availed by M/s Jumbo Finvest (India) Limited ('Corporate Debtor'). The loan was sanctioned under a facility agreement dated 27.03.2018 with a limit of Rs. 25 crores. The Corporate Debtor defaulted on payments, leading to the Applicant notifying them on 19.12.2019 about the default on interest payments. The Applicant deposited cheques issued by the Corporate Debtor, which were returned due to insufficient funds. Notices were issued under Section 138 of the Negotiable Instruments Act, 1881. The Corporate Debtor made partial payments

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## Issues and analysis

### Issue 1: Whether the application to initiate the Insolvency Resolution Process against the Personal …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate the

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**Reasoning:** The court observed that the Corporate Debtor defaulted on its debt, and the Personal

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The court applied Section 95 to the facts of the case, noting that the

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## Parties

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

## Timeline

- **2018-03-27 — Facility Ag…**: Loan was sanctioned to the Corporate Debtor under a facility agreement with a limit of…
- **2019-12-19 — Default Notif…**: Applicant notified the Corporate Debtor…

## 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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