# 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-00753. 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-00753
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shimnit-india-pvt-ltd-vs-srs-bearing-industries-efc4dd49

## 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. Shimnit India Private Limited (Creditor) initiated the Insolvency Resolution Process against SRS Bearing Industries (Proprietor Mr. Rajesh D. Vora), who is the Personal Guarantor for Corporate Debtor Rushabh Precision Bearings Limited.

## Facts

Shimnit India Private Limited filed a Company Petition 497 of 2022 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 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. Despite receiving the notice on 24.02.2022, the Respondent failed to make any payment. The Corporate Insolvency Resolution Process against the Corporate Debtor, Rushabh Precision Bearings Limited, had already been initiated in CP 70 of 2022 under Section 7 of the Insolvency and Bankruptcy Code, 2016, vide order dated 25.04.2022. Mr. Chirag Rajendrakumar Shah was

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, is …

**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 counsels and the available records, including

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

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**Application:** The application was deemed maintainable as the creditor followed the due

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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…
- **2022-02-24 — Receipt of Dema…**: The Respondent 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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