# In the matter of Sunita Jain

> NCLT judgment dated 2024-04-05. Citation: TCN-2024-NCLT-01818. The application was filed under Section 94 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 5 Apr 2024
- **Citation:** TCN-2024-NCLT-01818
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sunita-jain-104c46f4

## Summary

### Background

The application was filed under Section 94 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy Rules, 2019, by the applicant, Sunita Jain, who is a personal guarantor for M/s Namokar Strips Pvt. Ltd. The applicant sought to initiate the Insolvency Resolution Process. During 2013-2017, the Corporate Debtor incurred losses due to business failures and defaulted on debt repayments. The applicant, along with the directors of the Corporate Debtor, engaged in transactions with multiple creditors, obtaining loans and credit facilities from HDFC Bank, where the applicant acted as guarantor. A letter invoking the guarantee was issued against the personal guarantor by PNB on 01.02.2016, and a notice under Section 13(2) of the SARFAESI

…

## Facts

Sunita Jain, acting as a personal guarantor for M/s Namokar Strips Pvt. Ltd. (the Corporate Debtor), filed an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The Corporate Debtor experienced significant financial losses between 2013 and 2017, leading to defaults in debt repayment. Sunita Jain, along with the Corporate Debtor's directors, engaged in various corporate transactions with multiple creditors, including availing inter-corporate loans and credit facilities from HDFC Bank, where she served as a guarantor. A letter invoking the guarantee was issued by PNB on 01.02.2016, and HDFC Bank issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 18.03.2016. The total default

…

## Issues and analysis

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

**Ratio:** Section 94 of the Insolvency and Bankruptcy Code, 2016, allows a debtor to initiate the

…

**Reasoning:** The court considered that the application was filed by the personal guarantor, Sunita

…

**Interpretation:** Section 94 provides a mechanism for personal guarantors to initiate insolvency

…

**Application:** The court applied Section 94 and Rule 6 to the facts of the case, noting that

…

## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Sunita…
- **Respondents:** M/s Namokar…; HDFC BANK…

## Timeline

- **2013-01-01 — Corporate Debtor…**: During the period of 2013-17, the Corporate Debtor went into losses owing to massive…
- **2016-02-01 — Letter Invoking…**: A letter Invoking Guarantee was issued…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sunita-jain-104c46f4