# In the matter of Standard Charter Bank vs. Abdul Rehman Basheeruddin

> NCLT judgment dated 2023-07-13. Citation: TCN-2023-NCLT-02536. Standard Chartered Bank filed a petition under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Jul 2023
- **Citation:** TCN-2023-NCLT-02536
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/standard-charter-bank-vs-abdul-rehman-basheeruddin-af5eae24

## Summary

### Background

Standard Chartered Bank filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, 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, to initiate the Insolvency Resolution Process against Mr. Abdul Rehman Basheeruddin, the Personal Guarantor, for loans availed by the Corporate Debtor, Furnace Fabrica (India) Limited. The bank sought to recover outstanding debts for which the personal guarantee was provided.

## Facts

Standard Chartered Bank, the Financial Creditor, filed a petition against Mr. Abdul Rehman Basheeruddin, the Personal Guarantor, under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition pertains to loans availed by Furnace Fabrica (India) Limited, the Corporate Debtor, for which Mr. Basheeruddin provided a personal guarantee. The Corporate Debtor availed Consortium Facilities and Bilateral Facilities from the petitioner. The Consortium included State Bank of India, Export-Import Bank of India, and others, providing credit facilities aggregating to Rs. 288,00,00,000. The petitioner also granted Bilateral Facilities amounting to Rs. 57,60,000,000. The facilities were secured through various means, including personal guarantees from Mr.

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## Issues and analysis

### Issue 1: Whether the petition filed by Standard Chartered Bank under Section 95 of the Insolvency and …

**Ratio:** Section 95 of the IBC, 2016, read with Rule 7 of the Insolvency and Bankruptcy

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**Reasoning:** The court considered the petitioner's averments and supporting documents, including

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**Interpretation:** Section 95 of the IBC, 2016, is interpreted to provide a mechanism for

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**Application:** The court applied Section 95 of the IBC, 2016, to the facts of the case,

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Standard Chartered…
- **Respondents:** Furnace Fabrica…; Abdul Rehman…

## Timeline

- **2010-08-09 — Unattested Memorandum…**: Unattested Memorandum of Hypothecation…
- **2010-10-16 — Unattested Memorandum…**: Unattested Memorandum of Hypothecation…

## 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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