# In the matter of SIDBI vs. D.S. Jagannathan

> NCLT judgment dated 2024-02-02. Citation: TCN-2024-NCLT-02788. The Small Industries Development Bank of India (SIDBI) filed an application under Section 95(1)…

- **Court:** NCLT
- **Order date:** 2 Feb 2024
- **Citation:** TCN-2024-NCLT-02788
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sidbi-vs-ds-jagannathan-d5b7d388

## Summary

### Background

The Small Industries Development Bank of India (SIDBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate an Insolvency Resolution Process against the Personal Guarantor, Shri D.S. Jagannathan, of M/s. Tirupur Plaza Hotel Pvt Ltd. CIRP had been initiated against the Corporate Debtor, Tirupur Plaza Hotel Pvt Ltd, vide an order dated 25.04.2022. The Corporate Debtor had taken credit facilities from SIDBI, and the Respondent, Shri D.S. Jagannathan, had given a personal guarantee for the said loan. The Corporate Debtor failed to repay the debt, leading SIDBI to initiate CIRP against the Corporate Debtor and subsequently this application against the personal guarantor.

## Facts

Small Industries Development Bank of India (SIDBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate an Insolvency Resolution Process against Shri D.S. Jagannathan, the Personal Guarantor of M/s. Tirupur Plaza Hotel Pvt Ltd. The Corporate Debtor, Tirupur Plaza Hotel Pvt Ltd, had taken credit facilities from SIDBI, with Shri D.S. Jagannathan providing a personal guarantee for the loan. The Corporate Debtor defaulted on the debt, leading to the initiation of CIRP against it on 25.04.2022. The outstanding debt, including interest, amounted to Rs. 5,53,90,934/-, with the date of default being 14.10.2019. A demand notice was issued to the Personal Guarantor on 21.04.2022. The Corporate Debtor is currently under liquidation

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## Issues and analysis

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

**Ratio:** Section 95 of the IBC provides that a creditor may apply either by himself, or jointly

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**Reasoning:** The court considered the provisions of Section 95 of the IBC and the averments made in

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**Interpretation:** Section 95 allows a creditor to initiate the insolvency resolution process

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**Application:** SIDBI, as the creditor, has filed an application under Section 95(1) of the IBC

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Small Industries…
- **Respondents:** Tirupur Plaza…; D.S. Jagan…

## Timeline

- **2019-10-14 — Date of D…**: The Corporate Debtor defaulted on…
- **2022-04-21 — Demand N…**: Demand Notice issued to…

## Legal provisions

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

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