# In the matter of The Karur Vysya Bank Limited vs. Shanthi Mohan

> NCLT judgment dated 2025-02-28. Citation: TCN-2025-NCLT-00422. Karur Vysya Bank Ltd. filed an application under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Feb 2025
- **Citation:** TCN-2025-NCLT-00422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/the-karur-vysya-bank-limited-vs-shanthi-mohan-198dceb0

## Summary

### Background

Karur Vysya Bank Ltd. filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Insolvency Resolution Process against the personal guarantor, Shanthi Mohan, of Saraswati Udyog India Limited, the Corporate Debtor. Saraswati Udyog India Limited had taken credit facilities from the bank, and Shanthi Mohan had given a personal guarantee for the loan. The Corporate Debtor defaulted on the debt, leading the bank to initiate CIRP against the Corporate Debtor.

## Facts

Karur Vysya Bank Ltd. filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Shanthi Mohan, the personal guarantor of Saraswati Udyog India Limited. Saraswati Udyog India Limited had taken credit facilities from Karur Vysya Bank Ltd., and Shanthi Mohan had provided a personal guarantee for the loan. The Corporate Debtor defaulted on the debt, leading the bank to initiate CIRP against the Corporate Debtor. The debt amount was Rs.63,51,54,356.88/-, and the date of default was 15.01.2020. The Personal Guarantee Agreement was dated 27.03.2018, and the Acknowledgement of Debt by the Respondent was dated 28.03.2018. A demand notice was issued to the Personal Guarantor on 18.12.2021.

## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 95 of the IBC allows a creditor to apply for initiating an Insolvency Resolution

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**Reasoning:** The court considered the averments made in the application, including the debt amount,

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**Interpretation:** Section 95 of the IBC provides a mechanism for creditors to recover their dues

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**Application:** In this case, Karur Vysya Bank Ltd. filed an application under Section 95(1) of

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Karur Vysya Bank…
- **Respondents:** Saraswati Udyog…; Shanthi…

## Timeline

- **2020-01-15 — Date of D…**: Date on which the Corporate…
- **2018-03-27 — Personal Guarantee…**: Date of the Personal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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