# In the matter of Suman Soni, CP (IB)-96/94(1)/JPR/2021

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-02982. The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Apr 2022
- **Citation:** TCN-2022-NCLT-02982
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suman-soni-cp-ib-96941jpr2021-0c921942

## Summary

### Background

The case pertains to an application filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The applicant, Suman Soni, is the personal guarantor for G.P. Cottfab Pvt. Ltd. ('Corporate Debtor'). The applicant submitted that she is a guarantor pursuant to an agreement dated 2017, where a loan was advanced to the Corporate Debtor by Punjab National Bank. The Corporate Debtor defaulted on the loan, leading to a notice under Section 13(2) of the SARFAESI Act, 2002. An earlier application under Section 9 of the Code against the Corporate Debtor was admitted, and the Corporate

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## Facts

Suman Soni is the personal guarantor for G.P. Cottfab Pvt. Ltd. A loan was advanced to G.P. Cottfab Pvt. Ltd. by Punjab National Bank based on a guarantee agreement dated 2017. G.P. Cottfab Pvt. Ltd. defaulted on the loan, leading to a notice under Section 13(2) of the SARFAESI Act, 2002. An application under Section 9 of the IBC against G.P. Cottfab Pvt. Ltd. was admitted, and the company was ordered to be liquidated. Suman Soni filed an application under Section 94(1) of the IBC for initiating the insolvency resolution process as a personal guarantor. The amount of default is Rs. 20,73,96,097.00, with the date of default being 11.12.2018. The application was filed in respect of debts which are not excluded debts under Section 79(15) of the Code. The applicant has

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## Issues and analysis

### Issue 1: Whether the application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, filed by …

**Ratio:** Section 94(1) of the Insolvency and Bankruptcy Code, 2016, allows a debtor to apply for

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**Reasoning:** The Adjudicating Authority considered that the applicant, Suman Soni, is a personal

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**Interpretation:** Section 94(1) provides a mechanism for personal guarantors to initiate

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**Application:** The applicant, Suman Soni, being a personal guarantor who has defaulted, is

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## Parties

- **Judges:** Deep Chandr…; RaghuNa…
- **Appellants:** Suman…
- **Respondents:** G.P. Cottfab Pvt.…

## Timeline

- **2017-12-16 — Guarantee Ag…**: Agreement of Guarantee dated 16.12.2017 whereby a loan was advanced to the Corporate…
- **2018-12-11 — Date of D…**: Date of default as 11.12.2018, i.e., date of Letter preferred by the Punjab National Bank…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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