# In the matter of South Indian Bank Ltd Vs. Visalakshi Periyasamy, CP (IB)/156(CHE)/2021

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02349. The South Indian Bank Limited filed an application under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/south-indian-bank-ltd-vs-visalakshi-periyasamy-cp-536519ff

## Summary

### Background

The South Indian Bank Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Visalakshi Periyasamy, the personal guarantor of Dharani Sugars & Chemicals Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default with the last date of default being 30.11.2019. The Financial Creditor has placed the Record of Default on file. The application seeks to initiate proceedings against the Respondent under Section 95(1) of the IBC, 2016.

## Facts

The South Indian Bank Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Mrs. Visalakshi Periyasamy, who is the personal guarantor for Dharani Sugars & Chemicals Limited. Dharani Sugars & Chemicals Limited is undergoing CIRP, and an order for CIRP was passed by the Tribunal on 29.07.2021. The application was filed due to a default with the last date of default being 30.11.2019. The Financial Creditor has placed the Record of Default on file. The Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 to the Personal Guarantor on 20.08.2020 is also placed on record. The

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## Issues and analysis

### Issue 1: Whether the application filed by the South Indian Bank under Section 95(1) of the IBC, 2016 against …

**Ratio:** The court will consider all defenses raised by the Respondent Personal Guarantor when the

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**Reasoning:** The court acknowledged the Respondent's argument that the application is liable to be

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**Interpretation:** This indicates that the court is deferring the decision on the maintainability

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**Application:** The court will not dismiss the application at this stage based on the

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## Parties

- **Judges:** Ramalingam…; Shri. Samee…
- **Appellants:** The South Indian…
- **Respondents:** Dharani Sugars…; Visalakshi…

## Timeline

- **2015-03-16 — Deed of Guarantee…**: The Personal Guarantor…
- **2015-09-28 — Deed of Guarantee…**: The Personal Guarantor…

## 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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