# In the matter of Shiv Kumar vs. Kotak Mahindra Bank & Ors.

> NCLT judgment dated 2024-03-28. Citation: TCN-2024-NCLT-01923. The application is filed under Section 94 of the Insolvency and Bankruptcy Code, 2016 (IBC)…

- **Court:** NCLT
- **Order date:** 28 Mar 2024
- **Citation:** TCN-2024-NCLT-01923
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shiv-kumar-vs-kotak-mahindra-bank-ors-1a9915be

## Summary

### Background

The application is filed under Section 94 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019 by the Applicant/ Personal Guarantor, Shiv Kumar. The applicant seeks to initiate the Insolvency Resolution Process as a personal guarantor for M/s Ambition Indo Steel LLP, the Corporate Debtor. The Corporate Debtor is a Limited Liability Partnership registered on 01.09.2015.

## Facts

Shiv Kumar, acting as a personal guarantor for M/s Ambition Indo Steel LLP, filed an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The Corporate Debtor, Ambition Indo Steel LLP, a Limited Liability Partnership registered on 01.09.2015, availed credit facilities from various creditors but defaulted due to surges in steel prices, resulting in a total default of Rs. 49,87,100 to seven creditors. Key creditors include Kotak Mahindra Bank Ltd. (Rs. 17,21,829), IDFC First Bank Ltd. (Rs. 7,36,825), and Axis Finance Ltd. (Rs. 22,36,433). Axis Finance Limited raised objections, stating that a loan of Rs. 25,08,413 was sanctioned at 17% per annum, but the borrower defaulted, leading to a loan

…

## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Shiv Kumar, under Section 94 of the …

**Ratio:** Section 94 of the Insolvency and Bankruptcy Code, 2016, allows a debtor to apply for

…

**Reasoning:** The court observed that the application was in Form-A, accompanied by the required fees,

…

**Interpretation:** Section 94 of the IBC provides a mechanism for personal guarantors to initiate

…

**Application:** The court found that the application met the prima facie requirements of

…

## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** SHIV K…
- **Respondents:** Ambition Indo…; KOTAK MAHINDRA…

## Timeline

- **2015-09-01 — Corporate Debtor…**: Ambition Indo Steel LLP registered as…
- **2022-07-28 — Loan Recall…**: Answering Respondent issued a loan recall notice calling upon the defaulters to make…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shiv-kumar-vs-kotak-mahindra-bank-ors-1a9915be