# In the matter of The Karur Vysya Bank Ltd Vs. Akash Goyal, CP(IB)/413(ND)/2022

> NCLT judgment dated 2022-08-03. Citation: TCN-2022-NCLT-01484. The Karur Vysya Bank Limited, the 'Applicant/Creditor', filed an application under Section…

- **Court:** NCLT
- **Order date:** 3 Aug 2022
- **Citation:** TCN-2022-NCLT-01484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/the-karur-vysya-bank-ltd-vs-akash-goyal-cp-00c82069

## Summary

### Background

The Karur Vysya Bank Limited, the 'Applicant/Creditor', filed an application under Section 95(1) r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Akash Goyal, the Personal Guarantor/Debtor, who is the Guarantor of M/s. Azad Impex Private Limited, the 'Corporate Debtor'. The Guarantee Deed/Agreement was executed and signed by Mr. Akash Goyal on 2015-03-10, guaranteeing the loan granted to M/s. Azad Impex Pvt Ltd. The loan account of the Corporate Debtor became Non-Performing Asset (NPA) on 2019-02-13.

## Facts

Karur Vysya Bank Limited filed an application against Mr. Akash Goyal, who acted as a personal guarantor for a loan extended to M/s. Azad Impex Private Limited. The guarantee deed was executed on 2015-03-10. The loan account of the Corporate Debtor became NPA on 2019-02-13. The bank claimed a total debt of Rs. 65,41,34,079.89/-. The bank invoked the guarantee on 2019-02-20 and sent a notice demanding payment on 2022-04-07. The application was filed under Section 95(1) of the IBC, 2016. The outstanding debt includes a working capital limit of Rs. 65,41,34,079.89/-. The debt is secured by hypothecation of current assets and collateral securities including commercial properties and factory land. The date when the debt was due is 2019-02-20, and the date of default is also

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## Issues and analysis

### Issue 1: Whether the application filed by Karur Vysya Bank Limited under Section 95(1) of the IBC, 2016 …

**Ratio:** Section 95(1) of the IBC, 2016 allows a creditor to initiate insolvency resolution

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**Reasoning:** The applicant, Karur Vysya Bank Limited, has claimed that Mr. Akash Goyal, the personal

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** The application is maintainable as the bank has demonstrated that Mr. Akash

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** The Karur Vysya…
- **Respondents:** M/S AZAD IMPEX…; Akash G…
- **Advocates:** Vijay K…; Rekha A…; +2 more

## Timeline

- **2015-03-10 — Guarantee Deed…**: Guarantee Deed/Agreement was executed and…
- **2019-02-13 — Loan Account Be…**: The loan account of the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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