# In the matter of Sharvesh vs. Canara Bank

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02890. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02890
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sharvesh-vs-canara-bank-632f8a5d

## Summary

### Background

The application 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, by Mr. Sharvesh, the Applicant/Personal Guarantor. The prayer is to initiate the Insolvency Resolution Process in respect of Mr. Sharvesh, being the Personal Guarantor for M/s. Srivisha Infra Pvt. Ltd. ('Corporate Debtor'). M/s. Srivisha Infra Pvt. Ltd. had taken credit facilities from Canara Bank, and the Applicant had given a personal guarantee for the loan. The Corporate Debtor failed to repay the debt, leading to the present application.

## Facts

Mr. Sharvesh, acting as a personal guarantor for M/s. Srivisha Infra Pvt. Ltd. ('Corporate Debtor'), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. M/s. Srivisha Infra Pvt. Ltd. had obtained credit facilities from Canara Bank, for which Mr. Sharvesh provided a personal guarantee. The Corporate Debtor defaulted on a debt of Rs. 1,18,28,277/-, with the date of default being 2022-04-29. Canara Bank issued a demand notice dated 2022-04-30 under Section 13(2) of the SARFAESI Act, 2022. Mr. Sharvesh also filed a statement of affairs as on 2023-12-15. The guarantor has served a copy of this application to every Financial Creditor and the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the application filed by Mr. Sharvesh under Section 94(1) of the Insolvency and Bankruptcy …

**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 considered the provisions of Section 94 of the IBC, which allows a debtor to

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**Interpretation:** Section 94 of the IBC allows a personal guarantor to initiate the Insolvency

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**Application:** Mr. Sharvesh, being the personal guarantor, has filed the application under

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Sharv…
- **Respondents:** M/s. Srivisha…; Canara…

## Timeline

- **2022-04-29 — Date of D…**: Date of default on the debt…
- **2022-04-30 — Demand N…**: Canara Bank issued a demand notice 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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