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

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-02991. 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-02991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suman-soni-cp-ib-96941jpr2021-5c99f8b3

## 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'). A loan was advanced to the Corporate Debtor by Punjab National Bank, Bhopalganj, Bhilwara, for which Suman Soni acted as a guarantor. The Corporate Debtor defaulted on the loan repayment, leading to the invocation of the personal guarantee. An application under Section 9 of the Code seeking CIRP against the Corporate Debtor was admitted on 12.09.2019. Subsequently, the CoC resolved to

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## Facts

Suman Soni acted as a personal guarantor for G.P. Cottfab Pvt. Ltd. ('Corporate Debtor') for a loan advanced by Punjab National Bank. The Corporate Debtor defaulted on the loan repayment. Suman Soni received a notice dated 19.12.2018 under section 13(2) of the SARFAESI Act, 2002, from Punjab National Bank, Bhopal Ganj, Bhilwara Branch, invoking the personal guarantee. An application under Section 9 of the Code seeking CIRP against the Corporate Debtor was admitted on 12.09.2019. The Committee of Creditors ('CoC') resolved to liquidate the Corporate Debtor. An order dated 02.03.2021 directed the Corporate Debtor to be liquidated. The amount of default is Rs. 20,73,96,097.00, with the date of default as 11.12.2018. Suman Soni filed an application under Section 94(1) of

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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 apply for

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**Reasoning:** The Adjudicating Authority noted that the applicant had failed to fulfill her obligations

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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 defaulted on her

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## Parties

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

## Timeline

- **2017-12-16 — Agreement of G…**: Agreement of Guarantee dated 16.12.2017 whereby a loan was advanced to the Corporate…
- **2018-12-19 — Notice under SARFAESI…**: Applicant received a notice dated 19.12.2018 under section 13(2) of the SARFAESI Act,…

## 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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