# In the matter of Stressed Asset Stabilization Fund Vs. Uma Aggarwal, CP (IB)/192/2022

> NCLT judgment dated 2022-10-19. Citation: TCN-2022-NCLT-00689. The Stressed Assets Stabilization Fund (Financial Creditor) filed a petition under Section 95…

- **Court:** NCLT
- **Order date:** 19 Oct 2022
- **Citation:** TCN-2022-NCLT-00689
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stressed-asset-stabilization-fund-vs-uma-aggarwal-cp-50216203

## 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 Uma Aggarwal, the Personal Guarantor of Kumar's Metallurgical Corp. Ltd. 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, Uma Aggarwal and others executed guarantee agreements. The Financial Creditor issued a loan recall letter and demand notice to the

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## Facts

The Stressed Assets Stabilization Fund (Financial Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Uma Aggarwal, the Personal Guarantor of M/s. Kumar's Metallurgical Corporation Limited (Corporate Debtor). The Corporate Debtor had availed various term loans from the Financial Creditor and its associate banks, including IFCI Limited and ICICI Bank. To secure the repayment of the financial assistance, Uma Aggarwal and other individuals executed guarantee agreements. The Financial Creditor issued a loan recall letter and demand notice to the Corporate Debtor and Personal Guarantor after the Corporate Debtor defaulted on its payments. The outstanding debt payable by the

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## Issues and analysis

### Issue 1: Whether Insolvency Resolution Process can be ordered against the Personal Guarantor Smt Uma …

**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 not made payments towards the

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**Interpretation:** The legal issue concerns the interpretation and application of Section 95 of

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** DR.VENKATA…; Veera Brahma Rao…
- **Appellants:** Stressed Assets…
- **Respondents:** Kumar's Metallurgi…; Uma Agg…

## Timeline

- **2022-10-19 — Order Da…**: Date of the order admitting the petition to initiate Insolvency Resolution Process…
- **2022-08-18 — Ex-parte…**: 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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