# In the matter of Usha Aggarwal Vs. Union Bank of India, CP (IB)/05/ND/2023

> NCLT judgment dated 2023-02-28. Citation: TCN-2023-NCLT-04431. The case pertains to an application filed under section 94(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Feb 2023
- **Citation:** TCN-2023-NCLT-04431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/usha-aggarwal-vs-union-bank-of-india-cp-f60cbc52

## Summary

### Background

The case pertains to an application filed under section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution process for Personal Guarantors to Corporate Debtor) Rules, 2019, and regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. The application was filed by Ms. Usha Aggarwal, the Personal Guarantor of M/s. Sargam India Electronics Private Limited, seeking initiation of the Insolvency Resolution Process.

## Facts

Ms. Usha Aggarwal, acting as the personal guarantor for M/s. Sargam India Electronics Private Limited, filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The application was prompted by the failure of the Corporate Debtor and the Applicant to repay a total debt of INR 62,04,25,306.63/- to Union Bank of India. The Tribunal directed the applicant to serve notice to the respondents, which was done via email to Union Bank of India. Shri Hemant Sethi was proposed as the Resolution Professional and subsequently appointed by the Adjudicating Authority. An interim moratorium was declared from the date of application. The Resolution Professional is required to file a report under Section

…

## Issues and analysis

### Issue 1: Whether the application filed by the personal guarantor under Section 94(1) of the Insolvency and …

**Ratio:** Section 94(1) of the Insolvency and Bankruptcy Code, 2016, allows a debtor to apply for

…

**Reasoning:** The Tribunal considered the application filed by the personal guarantor and the fact that

…

**Interpretation:** Section 94(1) provides a mechanism for debtors, including personal guarantors,

…

**Application:** The Tribunal applied Section 94(1) to the facts of the case, where the personal

…

## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** Usha Agg…
- **Respondents:** Sargam India…; Union Bank of…

## Timeline

- **2023-01-05 — Tribunal…**: Tribunal directed the applicant to serve…
- **2023-02-28 — Date of Prono…**: Date of pronouncement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/usha-aggarwal-vs-union-bank-of-india-cp-f60cbc52