# In the matter of Union Bank of India Vs. Sanjay Lamba, CP(IB)/538/ND/2021

> NCLT judgment dated 2022-10-06. Citation: TCN-2022-NCLT-00833. This case involves an application filed by Union Bank of India under Section 95 of the…

- **Court:** NCLT
- **Order date:** 6 Oct 2022
- **Citation:** TCN-2022-NCLT-00833
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/union-bank-of-india-vs-sanjay-lamba-cp-5520c372

## Summary

### Background

This case involves an application filed by Union Bank of India under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Sanjay Lamba, the personal guarantor of M/s. Sainov Spirits Pvt. Ltd (Corporate Debtor). The Corporate Debtor is already undergoing Corporate Insolvency Resolution Process (CIRP) triggered by an order dated 05.02.2020. The bank claims that the corporate debtor had executed multiple guarantees for credit facilities aggregating Rs. 69,49,00.000/-, and the account was classified as a Non-Performing Asset (NPA) w.e.f. 30.09.2016. The bank invoked the guarantees and issued a demand notice dated 19.10.2020, which was served upon the guarantor. The guarantor replied to the demand notice.

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## Facts

Union Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Sanjay Lamba, the personal guarantor of M/s. Sainov Spirits Pvt. Ltd. The corporate debtor, M/s. Sainov Spirits Pvt. Ltd., is already undergoing Corporate Insolvency Resolution Process (CIRP). The bank claims that the corporate debtor had executed multiple guarantees for credit facilities aggregating Rs. 69,49,00.000/-. The account of the corporate debtor was classified as a Non-Performing Asset (NPA) w.e.f. 30.09.2016. The bank invoked the guarantees and issued a demand notice dated 19.10.2020, which was served upon the guarantor. The guarantor replied to the demand notice. The bank also filed a Civil Suit for

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The ratio is based on the interpretation of Section 95 of the IBC and the relevant

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**Reasoning:** The court reasoned that the Hon'ble NCLAT had already adjudicated upon the issue of

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**Interpretation:** The interpretation involves understanding the provisions of the IBC related to

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**Application:** The ratio and reasoning are applied to the specific facts of the case,

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** Union Bank of…
- **Respondents:** M/s. Sainov…; Sh. Sanjay…

## Timeline

- **2016-09-30 — NPA Classif…**: The account of the corporate debtor was classified as a Non-Performing Asset (NPA) by the…
- **2020-10-19 — Demand N…**: The Bank issued a Demand Notice to the guarantor under Clause B of Sub Section 4 of…

## 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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