# In the matter of Union Bank of India vs. Rohit Ashok Jindal

> NCLT judgment dated 2024-08-01. Citation: TCN-2024-NCLT-00900. Union Bank of India filed a Company Petition under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Aug 2024
- **Citation:** TCN-2024-NCLT-00900
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/union-bank-of-india-vs-rohit-ashok-jindal-1846c6f7

## Summary

### Background

Union Bank of India filed a Company Petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Rohit Ashok Jindal, the Personal Guarantor, due to the failure of Shree Siddhi Vinayak Ispat Pvt. Ltd. (Corporate Debtor) to meet its repayment obligations. The bank had extended financial assistance to the Corporate Debtor, and Mr. Jindal had provided a personal guarantee for the same. Despite opportunities to regularize the accounts, both the Corporate Debtor and the Personal Guarantor failed to repay the outstanding dues.

## Facts

Union Bank of India extended financial assistance to M/s. Shree Siddhi Vinayak Ispat Pvt. Ltd. Rohit Ashok Jindal, being the Director of the Corporate Debtor, offered his personal guarantee in favor of the Financial Creditor. A Deed of Guarantee dated 2014-06-28 was executed by Shri Ashok Kumar Jindal, Smt. Jyoti Ashok Jindal, and Shri. Rohit Ashok Jindal in favor of Andhra Bank (Now, Union Bank of India), Bank of Baroda and State Bank of India towards repayment of financial assistance extended by the Financial Creditors to the Corporate Debtor. Due to the failure of the Corporate Debtor to meet its repayment obligations, the Financial Creditor decided to recall the advances and invoke the personal guarantee. A Demand Notice was issued to the Personal Guarantor on

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## Issues and analysis

### Issue 1: Whether the petition for initiating insolvency resolution process against the Personal Guarantor to …

**Ratio:** The Tribunal relied on the provisions of the Insolvency and Bankruptcy Code, 2016, and

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**Reasoning:** The Tribunal reasoned that the petition was complete in all respects and that the

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**Interpretation:** The interpretation of Section 95 to Section 99 of the IBC is that the process

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**Application:** The ratio and reasoning were applied to the facts of the case, leading the

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Union Bank of…
- **Respondents:** Shree Siddhi…; Rohit Ashok…

## Timeline

- **2014-06-28 — Deed of Gua…**: A Deed of Guarantee was executed by Shri Ashok Kumar Jindal, Smt. Jyoti Ashok Jindal, and…
- **2016-11-24 — Notice under section…**: Financial Creditor issued Notice under section 13(2) to both the Corporate Borrower as…

## 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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