# In the matter of Stressed Asset Stabilization Fund Vs. Anil Kumar Aggarwal, CP (IB)/194/2022

> NCLT judgment dated 2022-10-19. Citation: TCN-2022-NCLT-00686. The Stressed Assets Stabilization Fund (Financial Creditor) filed a petition under Section 95…

- **Court:** NCLT
- **Order date:** 19 Oct 2022
- **Citation:** TCN-2022-NCLT-00686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stressed-asset-stabilization-fund-vs-anil-kumar-aggarwal-cp-68bb3d01

## Summary

### Background

The Stressed Assets Stabilization Fund (Financial Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking initiation of the Insolvency Resolution Process against Sri. Anil Kumar Aggarwal, the Personal Guarantor of Kumar's Metallurgical Corp. Ltd. The Corporate Debtor had availed various types of term loans from the Financial Creditor and its Associate Banks, namely IFCI Limited and ICICI Bank, under different loan documents. To secure the repayment of the financial assistance, Smt Uma Aggarwal, Shri Anil Kumar Aggarwal, (Late) Shri Satish Kumar

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## Facts

The Stressed Assets Stabilization Fund, the Financial Creditor, filed a Company Petition (IB/194/2022) under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Anil Kumar Aggarwal, the Personal Guarantor of M/S. Kumar's Metallurgical Corporation Limited, the Corporate Debtor. The Corporate Debtor had availed various term loans from the Financial Creditor and its associate banks, IFCI Limited and ICICI Bank. To secure the repayment of the financial assistance, Smt Uma Aggarwal, Shri Anil Kumar Aggarwal, (Late) Shri Satish Kumar Aggarwal and Smt Uma Aggarwal stood as guarantors and executed guarantee agreements dated 05.02.1991, 10.10.1992, 05.06.1993, 30.10.1993 and 30.10.1995. The Financial Creditors issued a Loan Recall Letter dated 05.09.2001,

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## Issues and analysis

### Issue 1: Whether Insolvency Resolution Process can be ordered against the Personal Guarantor Sri Anil Kumar …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the

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**Reasoning:** The court reasoned that the Personal Guarantor had neither disposed of his liabilities

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**Interpretation:** The court interpreted Section 95 of the IBC and related rules to allow the

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**Application:** The court applied the provisions of Section 95 of the IBC and related rules to

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## Parties

- **Judges:** DR.VENKATA…; Veera Brahma Rao…
- **Appellants:** Stressed Assets…
- **Respondents:** M/S. Kumar's…; Anil Kumar…

## Timeline

- **1991-02-05 — Guarantee Ag…**: Guarantee Agreements…
- **1992-10-10 — Guarantee Ag…**: Guarantee Agreements…

## 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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