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

> NCLT judgment dated 2024-03-28. Citation: TCN-2024-NCLT-01927. 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-01927
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shiv-kumar-vs-kotak-mahindra-bank-ors-ef9be421

## 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, Shiv Kumar, who is the personal guarantor of M/s Ambition Indo Steel LLP. The applicant seeks to initiate the Insolvency Resolution Process. The Corporate Debtor is a Limited Liability Partnership registered on 01.09.2015.

## Facts

Shiv Kumar, the personal guarantor of M/s Ambition Indo Steel LLP, filed an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process. The Corporate Debtor, Ambition Indo Steel LLP, is a Limited Liability Partnership registered on 01.09.2015. The Corporate Debtor availed credit facilities from various creditors and defaulted in repayment due to surges in steel prices. As of the application date, the Corporate Debtor defaulted in repayment to seven creditors, including Kotak Mahindra Bank Ltd., IDFC First Bank Ltd., Lendingkart Finance Ltd., Axis Finance Ltd., Aditya Birla Finance Ltd., Hero Fincorp Ltd., and Poonawalla Fincorp Ltd., with a total default amount of Rs. 49,87,100/-. Axis Finance Limited,

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor under Section 94 of the Insolvency and …

**Ratio:** Section 94 of the Insolvency and Bankruptcy Code, 2016, allows a personal guarantor to

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**Reasoning:** The court noted that the application was filed under Section 94 of the Code and that the

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**Interpretation:** Section 94 provides a mechanism for personal guarantors to initiate insolvency

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**Application:** The court applied Section 94 to the facts of the case, finding that the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** SHIV K…
- **Respondents:** Ambition Indo…; KOTAK MAHINDRA…
- **Advocates:** Dheeraj…; Abu John…; +1 more

## Timeline

- **2015-09-01 — Corporate Debtor…**: Ambition Indo Steel LLP registered as…
- **2021-10-25 — Business Loan…**: Axis Finance Limited executed a…

## 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)

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