# In the matter of Solapur Janata Sahakari Bank Ltd. vs. Sangita Pandurang Jhinje

> NCLT judgment dated 2024-03-01. Citation: TCN-2024-NCLT-02279. The case involves a petition filed by Solapur Janata Sahakari Bank Limited (“Financial Creditor…

- **Court:** NCLT
- **Order date:** 1 Mar 2024
- **Citation:** TCN-2024-NCLT-02279
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/solapur-janata-sahakari-bank-ltd-vs-sangita-pandurang-jhinje-9f12ff94

## Summary

### Background

The case involves a petition filed by Solapur Janata Sahakari Bank Limited (“Financial Creditor / Applicant”) under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate insolvency resolution process against Ms. Sangita Pandurang Jhinje (“Personal Guarantor / Respondent”). The petition is for the recovery of INR 13,42,12,779/- which includes principal and interest as on 30.09.2021. The date of default is specified as 31.03.2017, pertaining to a property mortgaged loan. The Corporate Debtor, Shetkari Sakhar Karkhana (Chandipur) Limited, had been sanctioned short-term security facilities by the Applicant, and the Personal Guarantor was one of the executors of the Personal Guarantee and Mortgage Deed.

## Facts

Solapur Janata Sahakari Bank Limited filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Ms. Sangita Pandurang Jhinje, a personal guarantor, for recovery of INR 13,42,12,779/-. This amount includes a principal of INR 5,41,40,285/- and interest of INR 8,00,72,494/-, calculated as of September 30, 2021. The date of default is March 31, 2017, based on a property mortgaged loan. The Corporate Debtor, Shetkari Sakhar Karkhana (Chandipur) Limited, had been sanctioned short-term security facilities by the bank. Ms. Jhinje was an executor of the personal guarantee and mortgage deed dated September 21, 2015. A Company Petition bearing C.P. (IB) No. 1349/IBC/NCLT/MAH/2017 was filed under Section 9 of the IBC, 2016, initiating Corporate

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of the IBC, 2016, for initiating insolvency resolution …

**Ratio:** The liability of the surety is co-extensive with that of the principal debtor, as

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**Reasoning:** The tribunal considered the observations made by the Supreme Court in Dilip B. Jiwrajka

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**Interpretation:** Section 95 of the IBC allows a financial creditor to initiate insolvency

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**Application:** The tribunal found that the application was maintainable, considering the

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Solapur Janata…
- **Respondents:** Shetkari Sakhar…; Sangita Pandurang…

## Timeline

- **2015-08-20 — Sanction Lett…**: Shetkari Sakhar Karkhana (Chandipur) Limited was sanctioned short-term other security…
- **2015-09-21 — Personal Guarantee and…**: The Personal Guarantor executed the…

## 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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