# In the matter of UCO Bank vs. Akhilesh Pandey

> NCLT judgment dated 2024-11-04. Citation: TCN-2024-NCLT-00310. This case involves an application filed by UCO Bank, the Financial Creditor, under Section…

- **Court:** NCLT
- **Order date:** 4 Nov 2024
- **Citation:** TCN-2024-NCLT-00310
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/uco-bank-vs-akhilesh-pandey-6579f478

## Summary

### Background

This case involves an application filed by UCO Bank, the Financial Creditor, under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against Mr. Akhilesh Pandey, the Personal Guarantor to M/s Divine Alloys & Power Co Limited, the Corporate Debtor. The Financial Creditor seeks initiation of the Insolvency Resolution Process against the Personal Guarantor due to a default of Rs. 152,15,92,468.42. The Corporate Debtor was already undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Punjab National Bank under Section 7 of the IBC, which was admitted on

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## Facts

UCO Bank, the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mr. Akhilesh Pandey, the Personal Guarantor to M/s Divine Alloys & Power Co Limited, the Corporate Debtor, for a default of Rs. 152,15,92,468.42. The Corporate Debtor was already undergoing CIRP and was later sent into liquidation. The Financial Creditor issued a notice dated 12.07.2019 to the borrowers and guarantors requesting payment, which was replied to by the Personal Guarantor on 29.07.2019. Subsequently, a demand notice dated 06.04.2021 was issued to the Personal Guarantor under Rule 7(1) of the Insolvency and Bankruptcy Rules, 2019, for Personal Guarantors. The Resolution Professional, Mr. Naresh Agarwal, was appointed to examine

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 95(1) of the IBC against the …

**Ratio:** The Hon'ble NCLAT, Principal Bench, New Delhi in the matter of State Bank of India vs.

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**Reasoning:** The court relied on the judgment of Hon'ble NCLAT in the matter of NS Engineering, which

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**Interpretation:** This interpretation emphasizes that the primary focus of the IBC is on the

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**Application:** In this case, the court found that there was sufficient material to show that

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** UCO B…
- **Respondents:** M/s Divine Alloys…; Akhilesh…
- **Advocates:** Mr Santosh…; Ms Rituparna…; +4 more

## Timeline

- **2016-03-31 — Corporate Debtor…**: The account of M/s Divine Alloys and Power Company Limited was declared as Non-Performing…
- **2019-03-07 — CIRP Initiated Against…**: Punjab National Bank's application under Section 7 of the IBC against M/s Divine Alloys &…

## 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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