# In the matter of The Karur Vysya Bank Ltd Vs. Chand Kumar Goyal, CP (IB)/414/ND/2022

> NCLT judgment dated 2022-08-03. Citation: TCN-2022-NCLT-01477. The Karur Vysya Bank Limited filed an application under Section 95(1) r/w Rule 7(2) of the…

- **Court:** NCLT
- **Order date:** 3 Aug 2022
- **Citation:** TCN-2022-NCLT-01477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/the-karur-vysya-bank-ltd-vs-chand-kumar-goyal-cp-549b663b

## Summary

### Background

The Karur Vysya Bank Limited 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. Chand Kumar Goyal, who is the Guarantor of M/s. Giriraj Timber Private Limited. The loan account of the Corporate Debtor became Non-Performing Asset (NPA) on 13.02.2019. The applicant claimed a total debt of Rs.67,34,89,906.02/-.

## Facts

Karur Vysya Bank Limited (the 'Creditor/Applicant') 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. Chand Kumar Goyal (Personal Guarantor/Debtor), who is the Guarantor of M/s. Giriraj Timber Private Limited (Corporate Debtor). Guarantee Deeds were executed and signed by Mr. Chand Kumar Goyal on 12.06.2015 and 13.06.2015, guaranteeing the loan granted to M/s. Giriraj Timber Private Limited. The loan account of the Corporate Debtor became Non-Performing Asset (NPA) on 13.02.2019. The Applicant claimed a total debt of Rs.67,34,89,906.02/-. The applicant invoked the

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## Issues and analysis

### Issue 1: Whether the application filed by Karur Vysya Bank Limited under Section 95(1) r/w Rule 7(2) of the …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 read with Rule 7(2) of the

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**Reasoning:** The applicant, Karur Vysya Bank Limited, has filed the application against Mr. Chand

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**Interpretation:** Section 95(1) and Rule 7(2) provide the legal basis for a creditor to initiate

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**Application:** The ratio and reasoning apply to the facts of the case because Karur Vysya Bank

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## Parties

- **Judges:** DHARMINDER…; L. N. G…
- **Appellants:** The Karur Vysya…
- **Respondents:** Giriraj Timber…; Chand Kumar…

## Timeline

- **2015-06-12 — Execution of Guarantee…**: Guarantee Deeds were executed and…
- **2015-06-13 — Execution of Guarantee…**: Guarantee Deeds were executed and…

## 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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