# In the matter of Union Bank of India Vs. Amit Katyal, CP (IB)/536(ND)/2021

> NCLT judgment dated 2022-05-17. Citation: TCN-2022-NCLT-02730. Union Bank of India (formerly Corporation Bank) filed an application under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 17 May 2022
- **Citation:** TCN-2022-NCLT-02730
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/union-bank-of-india-vs-amit-katyal-cp-eee63f8c

## Summary

### Background

Union Bank of India (formerly Corporation Bank) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with 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. Amit Katyal, the personal guarantor for Angel Infrastructure Private Limited (the 'Corporate Debtor'). The application was based on the guarantee deeds executed by Mr. Katyal in favor of the bank to secure the loan granted to Angel Infrastructure Private Limited.

## Facts

Union Bank of India (formerly Corporation Bank) extended credit facilities to Angel Infrastructure Private Limited, with Mr. Amit Katyal acting as the personal guarantor. The bank sanctioned a term loan of Rs. 90 crore on 07/08/2014, followed by additional financial assistance of Rs. 55 lakh on 22/02/2017 for the purchase of a vehicle. Various security documents, including guarantee deeds, were executed. The corporate debtor's account was classified as NPA on 31/03/2019. The bank served a notice under Section 13(2) of the SARFAESI Act on 20/05/2019. The total outstanding debt was Rs. 114.83 crore as of 26/04/2021. The bank filed an application for recovery of the outstanding amount against the corporate debtor and guarantor on 18/02/2020, which is pending before the

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016 is maintainable against the personal …

**Ratio:** The Adjudicating Authority relied on the judgment of the NCLAT in Company Appeal (AT)

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**Reasoning:** The Adjudicating Authority considered the arguments presented by both the applicant and

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**Interpretation:** Section 60 of the IBC provides that the Adjudicating Authority for insolvency

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**Application:** In this case, the Adjudicating Authority determined that the application under

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Union Bank of…
- **Respondents:** Angel Infrastructu…; Sh. Amit…
- **Advocates:** Ekta Chou…; P. Na…; +3 more

## Timeline

- **2014-08-07 — Sanction of T…**: Union Bank of India sanctioned a term loan of Rs. 90 crore to Angel Infrastructure…
- **2014-10-30 — Execution of Loan and…**: Loan and security documents were executed, including an escrow account agreement,…

## 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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