# In the matter of T. Jayakumar vs. Indian Bank

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02897. Mr. T. Jayakumar, acting as a personal guarantor for M/s. Sunaichandran Mills Private Limited…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02897
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/t-jayakumar-vs-indian-bank-7370e6d4

## Summary

### Background

Mr. T. Jayakumar, acting as a personal guarantor for M/s. Sunaichandran Mills Private Limited ('Corporate Debtor'), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process. The Corporate Debtor had taken credit facilities from Indian Bank, and Mr. Jayakumar had provided a personal guarantee for the loan. The Corporate Debtor defaulted on the repayment, leading to the filing of the application.

## Facts

Mr. T. Jayakumar filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, as a personal guarantor to M/s. Sunaichandran Mills Private Limited, seeking to initiate the Insolvency Resolution Process. M/s. Sunaichandran Mills Private Limited had obtained credit facilities from Indian Bank, for which Mr. Jayakumar had provided a personal guarantee. The Corporate Debtor defaulted on a debt of Rs. 3,74,64,873/-, with the date of default being 30.09.2018. The applicant submitted a copy of the Demand Notice dated 01.10.2018 issued by Canara Bank under Section 13(2) of the SARFAESI Act, 2022, and a copy of the Auction Sale Notice dated 05.05.2023 issued by Indian Bank. The applicant also filed a statement of affairs as on 25.05.2023. The guarantor

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## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor, Mr. T. Jayakumar, under Section 94(1) of …

**Ratio:** Section 94(1) of the IBC allows a debtor to apply for initiating an Insolvency Resolution

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**Reasoning:** The court considered the facts presented in the application, including the default by the

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

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**Application:** The court applied Section 94(1) of the IBC to the facts of the case, where Mr.

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** T.Jayak…
- **Respondents:** Sunaichandran…; Indian…

## Timeline

- **2018-09-30 — Date of D…**: The Corporate Debtor defaulted on…
- **2018-10-01 — Demand N…**: Canara Bank issued a Demand Notice under…

## 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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