# In the matter of Shimnit India Pvt Ltd Vs. SRS Bearing Industries (Proprietor Mr. Rajesh D Vora), CP No. 497/IBC/2022

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00747. The case pertains to a Company Petition filed under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shimnit-india-pvt-ltd-vs-srs-bearing-industries-5bbbfa74

## Summary

### Background

The case pertains to a Company Petition filed under Section 95(1) 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, and regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. The petition was filed by Shimnit India Private Limited (Creditor) for initiating the Insolvency Resolution Process against SRS Bearing Industries (Proprietor Mr. Rajesh D. Vora) Personal Guarantor for Corporate Debtor Rushabh Precision Bearings Limited.

## Facts

Shimnit India Private Limited filed a Company Petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against SRS Bearings Industries (Proprietor Mr. Rajesh D. Vora), who is the Personal Guarantor for the Corporate Debtor Rushabh Precision Bearings Limited. A statutory notice of demand dated 27.01.2022 was served to the Personal Guarantor, requesting payment of Rs. 22,23,45,748/- due as on 31.12.2021. The Respondent failed to make any payment despite receiving the notice of demand dated 24.02.2022. The Applicant proposed Mr. Chirag Rajendrakumar Shah as the Resolution Professional. A Corporate Insolvency Resolution Process against the Corporate Debtor Rushabh Precision Bearings Limited has already been initiated under Section 7 of the Insolvency and

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## Issues and analysis

### Issue 1: Whether the Insolvency Resolution Process should be initiated against the Personal Guarantor, SRS …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, allows creditors to initiate

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**Reasoning:** The court considered the submissions of the applicant and the respondent, and the fact

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** Given that SRS Bearing Industries is the personal guarantor for Rushabh

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Shimnit India…
- **Respondents:** Rushabh Precision…; SRS Bearings…

## Timeline

- **2022-01-27 — Statutory Notice of…**: A Statutory Notice of Demand was issued to the Personal Guarantor, SRS Bearings…
- **2022-02-24 — Receipt of Dema…**: SRS Bearings Industries received the Demand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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