# In the matter of Siemens Financial Services Pvt Ltd Vs. Varun Jajoo & Anr, CP (IB) No. 739 (ND)/2021

> NCLT judgment dated 2022-08-22. Citation: TCN-2022-NCLT-01325. The case involves an application (IA-876/2022) filed as a report by the Resolution…

- **Court:** NCLT
- **Order date:** 22 Aug 2022
- **Citation:** TCN-2022-NCLT-01325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siemens-financial-services-pvt-ltd-vs-varun-jajoo-anr-cp-209edd26

## Summary

### Background

The case involves an application (IA-876/2022) filed as a report by the Resolution Professional, Babu Lal Gurjar, under Section 99 of the Insolvency and Bankruptcy Code (IBC), 2016. The original petition was filed by Siemens Financial Services (Financial Creditor) under Section 95 of the IBC against Mr. Varun Jajoo (Personal Guarantor) concerning a credit facility availed by Emkay Automobile Industries Limited (Corporate Debtor). The financial creditor sought initiation of the insolvency resolution process for the personal guarantor due to a default of Rs. 2,06,93,881/-.

## Facts

Siemens Financial Services Pvt. Ltd. (Financial Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. Varun Jajoo (Personal Guarantor) concerning a credit facility availed by Emkay Automobile Industries Limited (Corporate Debtor). The amount in default was Rs. 2,06,93,881/-. The Adjudicating Authority appointed Babu Lal Gurjar as the Resolution Professional (RP) who filed a report recommending the admission of the application. The Respondent/Personal Guarantor disputed the debt, claiming discrepancies in the amount claimed, including future outstanding principal, exorbitant cheque dishonour fees, and default interest. The Respondent also argued that the Financial Creditor had wrongly declared the loan account as a

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## Issues and analysis

### Issue 1: Whether the Insolvency Petition satisfies the …

**Ratio:** Section 95 of the IBC, 2016 outlines the requirements for initiating insolvency

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**Reasoning:** The Adjudicating Authority observed that the applicant has made available sufficient

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**Interpretation:** The petition must meet the threshold requirements for default and be supported

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**Application:** The court found that the petition met the requirements of Section 95, as the

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Seimens Financial…
- **Respondents:** Emkay Automobiles…; Varun J…
- **Advocates:** Ashwini Kumar…; SP Singh…

## Timeline

- **2021-01-01 — Company Petiti…**: Company Petition (IB)…
- **2022-01-31 — Appointment of…**: Adjudicating Authority appointed Babu Lal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 96 — Interim- moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-96)

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