# In the matter of Tilak Raj Bedi CP(IB) No.1/Chd/Pb/2022

> NCLT judgment dated 2022-07-25. Citation: TCN-2022-NCLT-01580. The case involves an application filed by Tilak Raj Bedi, a personal guarantor, under Section…

- **Court:** NCLT
- **Order date:** 25 Jul 2022
- **Citation:** TCN-2022-NCLT-01580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tilak-raj-bedi-cpib-no1chdpb2022-552e0a48

## Summary

### Background

The case involves an application filed by Tilak Raj Bedi, a personal guarantor, under Section 94 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process against him. Bedi is the personal guarantor for Puneet Fashions Private Limited, the corporate debtor, which availed a loan of Rs. 120.00 Crores from the Central Bank of India. The application was filed in the prescribed proforma, and a compliance affidavit was submitted. The Adjudicating Authority appointed Pawan Sharma as the Resolution Professional after receiving a report on his antecedents. The Resolution Professional sought information and clarification from the personal guarantor regarding the amount of default claimed by creditors, personal assets and liabilities,

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## Facts

Tilak Raj Bedi is the personal guarantor for Puneet Fashions Private Limited, which is the corporate debtor. Puneet Fashions availed a loan of Rs. 120.00 Crores from the Central Bank of India. Tilak Raj Bedi extended a personal guarantee in favor of Indian Bank (Erstwhile Allahabad Bank) to secure this debt. The corporate debtor defaulted on the loan repayment. Indian Bank (Erstwhile Allahabad Bank) had previously filed an application for liquidation against the corporate debtor, which was admitted by the Punjab and Haryana High Court. The personal guarantor, Tilak Raj Bedi, has not filed income tax returns since the financial year 2011-2012 and is not maintaining any bank account. The personal guarantor's net worth is Rs -197.82 Crores. Some properties of the personal

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## Issues and analysis

### Issue 1: Whether the application filed by Tilak Raj Bedi, the personal guarantor, under Section 94 of the …

**Ratio:** Section 94 of the Insolvency and Bankruptcy Code, 2016, allows a debtor to initiate

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**Reasoning:** The court considered the Resolution Professional's report, which confirmed that the

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**Interpretation:** Section 94 provides a mechanism for personal guarantors to initiate insolvency

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**Application:** The court found that the application was filed in accordance with Section 94

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Tilak Raj…
- **Respondents:** Puneet Fashions…; Indian…
- **Advocates:** Niharika…; Vikas Cha…

## Timeline

- **2022-01-07 — Order Da…**: Compliance affidavit pursuant to order…
- **2022-03-15 — Diary En…**: Compliance affidavit incorporated vide…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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