# In the matter of The Karur Vysya Bank Ltd Vs. Sourabh Goel, IA. NO. 6037/ND/2022 in CP (IB)/411/ND/2022

> NCLT judgment dated 2023-06-12. Citation: TCN-2023-NCLT-02988. The Karur Vysya Bank Limited filed a petition against Mr. Sourabh Goel, the personal guarantor,…

- **Court:** NCLT
- **Order date:** 12 Jun 2023
- **Citation:** TCN-2023-NCLT-02988
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/the-karur-vysya-bank-ltd-vs-sourabh-goel-ia-no-6037nd2022-in-cp-22c20c49

## Summary

### Background

The Karur Vysya Bank Limited filed a petition against Mr. Sourabh Goel, the personal guarantor, under Section 95 of the IBC, 2016, to initiate the insolvency resolution process. Mr. Paban Kumar Jain was appointed as the Resolution Professional (RP). The RP filed a report recommending the admission of the application against the personal guarantor. The bank had extended credit facilities to M/s Mahesh Industries Private Limited (Corporate Debtor), for which Mr. Goel provided a personal guarantee. The bank invoked the guarantee after the corporate debtor defaulted. The RP verified the debt and found discrepancies, requesting reconciliation from the bank. The bank provided a revised interest calculation sheet, showing an outstanding balance of Rs. 173,10,84,470.77 as of

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## Facts

The Karur Vysya Bank Limited extended credit facilities to M/s Mahesh Industries Private Limited, for which Mr. Sourabh Goel provided a personal guarantee via a Deed of Guarantee dated 2015-08-21. Mahesh Industries Private Limited defaulted on its payments, leading to an outstanding debt of Rs. 1,86,86,10,626.97. The Karur Vysya Bank Limited invoked the guarantee by issuing a demand notice on 2017-04-19 under the SARFAESI Act, 2002. A statutory demand notice in Form B under Section 95(4)(b) of IBC, 2016, was issued to Mr. Goel, but it could not be served via speed post, leading to substituted service through newspaper publications on 2022-05-14. The Resolution Professional (RP) appointed in the matter, Mr. Paban Kumar Jain, found discrepancies in the outstanding amount

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## Issues and analysis

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

**Ratio:** Section 95 of the IBC, 2016, allows a creditor to file an application for initiating the

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**Reasoning:** The court relied on the report submitted by the Resolution Professional, which

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

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**Application:** The court applied the provisions of Section 95 and Section 99 of the IBC, 2016,

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** The Karur Vysya…
- **Respondents:** Mahesh Industries…; Sourabh…

## Timeline

- **2015-08-21 — Deed of Gua…**: The loan facility was guaranteed by the Deed of Guarantee dated 21.08.2015 by the…
- **2017-04-19 — Demand N…**: The Karur Vysya Bank had invoked the guarantee by issuing a “Demand Notice dated…

## 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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