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

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-02977. 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-02977
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suman-soni-cp-ib-96941jpr2021-1872e25d

## 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, whereby a loan was advanced to the Corporate Debtor by Punjab National Bank. The Corporate Debtor defaulted in repayment, leading to a notice under Section 13(2) of the SARFAESI Act, 2002. An earlier CIRP application against the Corporate Debtor under Section 9 of the Code was admitted, but no

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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 under a guarantee agreement dated December 16, 2017. G.P. Cottfab Pvt. Ltd. defaulted on the loan repayment. A notice was issued to Suman Soni under Section 13(2) of the SARFAESI Act, 2002, on December 19, 2018. An earlier CIRP application against G.P. Cottfab Pvt. Ltd. was admitted on September 12, 2019, but it resulted in liquidation due to the absence of a resolution plan. The liquidation order was issued on March 2, 2021. The amount of default is Rs. 20,73,96,097.00, with the date of default being November 12, 2018. Suman Soni filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016. The application was

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## Issues and analysis

### Issue 1: Whether the application filed by Suman Soni under Section 94(1) of the Insolvency and Bankruptcy …

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

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 94(1) of the Code and the

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**Interpretation:** Section 94(1) provides a mechanism for debtors, including personal guarantors,

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**Application:** The application was filed by Suman Soni, a personal guarantor, under Section

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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 was executed, whereby a loan was advanced to the Corporate Debtor…
- **2018-11-12 — Date of D…**: Date of Letter preferred by the Punjab National Bank to the Applicant recalling the…

## 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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