# In the matter of Siemens Financial Services Pvt Ltd Vs. Raheem Rautther Meeran, CP (IBC)/7/KOB/2023

> NCLT judgment dated 2023-06-30. Citation: TCN-2023-NCLT-02740. Siemens Financial Services Private Limited filed an application under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 30 Jun 2023
- **Citation:** TCN-2023-NCLT-02740
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siemens-financial-services-pvt-ltd-vs-raheem-rautther-meeran-cp-03e775f4

## Summary

### Background

Siemens Financial Services Private Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, for initiating the insolvency resolution process against Mr. Raheem Rautther Meeran, the personal guarantor to M.S.S. Hospital and Nursing College Pvt. Ltd. The corporate debtor had availed credit facilities from the applicant, and the respondent provided a personal guarantee. The corporate debtor defaulted on repayment, leading to the application against the personal guarantor.

## Facts

M.S.S. Hospital and Nursing College Pvt. Ltd. (the 'corporate debtor') availed credit facilities amounting to Rs. 2,13,77,787 from Siemens Financial Services Private Limited for purchasing medical equipment. These facilities were secured by a personal guarantee from Mr. Raheem Rautther Meeran, the respondent. The credit facilities were granted under finance agreements A8593817 dated 2018-01-12 and A8593814 dated 2018-05-02. The corporate debtor defaulted on repayments, and the account was declared a non-performing asset on 2019-04-12. Siemens Financial Services Private Limited invoked the guarantee and issued a demand notice to Mr. Raheem Rautther Meeran on 2022-08-09 under Section 13(2) of the SARFAESI Act, 2002. A demand notice in Form B was served on the guarantor

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## Issues and analysis

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

**Ratio:** Proceedings can be initiated against the personal guarantors regardless of whether a CIRP

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**Reasoning:** The Tribunal relied on the Supreme Court's decision in Mahendra Kumar Jajodia vs. State

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**Interpretation:** The Supreme Court's ruling allows creditors to pursue insolvency proceedings

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**Application:** The Tribunal applied the principle from Mahendra Kumar Jajodia to the present

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Siemens Financial…
- **Respondents:** M.S.S. Hospital…; Raheem Rautther…
- **Advocates:** Vinod…

## Timeline

- **2018-01-12 — Finance Agreement…**: Date of finance agreement A8593817 between Siemens Financial Services Private Limited and…
- **2018-05-02 — Finance Agreement…**: Date of finance agreement A8593814 between Siemens Financial Services Private Limited and…

## 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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