# 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-00687. The case involves an application filed by Stressed Assets Stabilization Fund (Financial…

- **Court:** NCLT
- **Order date:** 19 Oct 2022
- **Citation:** TCN-2022-NCLT-00687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stressed-asset-stabilization-fund-vs-uma-aggarwal-cp-60b646d3

## Summary

### Background

The case involves an application filed by Stressed Assets Stabilization Fund (Financial Creditor) 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 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 stood as guarantors and executed guarantee agreements.

## Facts

Stressed Assets Stabilization Fund (Financial Creditor) filed an application 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 Insolvency Resolution Process against Uma Aggarwal, the Personal Guarantor of Kumar's Metallurgical Corp. Ltd (Corporate Debtor). The Corporate Debtor had availed various term loans from the Financial Creditor and its associate banks, IFCI Limited and ICICI Bank. 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,

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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 Adjudicating Authority considered the submissions of the Financial Creditor, the

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**Interpretation:** The legal issue revolves around the interpretation and application of Section

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

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

## Timeline

- **1991-02-05 — Guarantee Ag…**: Smt Uma Aggarwal, Shri Anil Kumar Aggarwal, (Late) Shri Satish Kumar Aggarwal and Smt Uma…
- **1992-10-10 — Guarantee Ag…**: Smt Uma Aggarwal, Shri Anil Kumar Aggarwal, (Late) Shri Satish Kumar Aggarwal and Smt Uma…

## 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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