# In the matter of Vakati Balasubramanyam Reddy vs. Archana Lalit Palwe

> NCLT judgment dated 2024-10-30. Citation: TCN-2024-NCLT-00324. The case pertains to an application filed by Mrs. Archana Lalit Palwe, the Personal Guarantor…

- **Court:** NCLT
- **Order date:** 30 Oct 2024
- **Citation:** TCN-2024-NCLT-00324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vakati-balasubramanyam-reddy-vs-archana-lalit-palwe-fd709640

## Summary

### Background

The case pertains to an application filed by Mrs. Archana Lalit Palwe, the Personal Guarantor to Creative Powertech Private Limited, under Section 94(1) of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Insolvency Resolution Process against herself. The Corporate Debtor, Creative Powertech Pvt. Ltd., is already undergoing CIRP, admitted by NCLT, Mumbai Bench-IV under Section 9 of the Code. The Applicant extended personal guarantees for loans granted to the Corporate Debtor by various financial institutions. The Resolution Professional (RP) filed a report recommending the admission of the application under Section 94 of the Code.

## Facts

Mrs. Archana Lalit Palwe, the Applicant, is the Personal Guarantor to Creative Powertech Private Limited, the Corporate Debtor. The Corporate Debtor is already undergoing CIRP, admitted by NCLT, Mumbai Bench-IV. The Applicant filed an application under Section 94(1) of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Insolvency Resolution Process against herself. The amount in default is Rs.10,86,83,115/-. The Applicant extended personal guarantees for loans granted to the Corporate Debtor by various financial institutions, including Central Bank of India, Samata Nagari Sahakari Patsanstha Maryadit, Bajaj Finance Limited, Piramal Capital and Housing Finance, L & T Finance, Indostar Capital Finance, and AU Small Finance Bank. The Resolution

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## Issues and analysis

### Issue 1: Whether the application filed by the Personal Guarantor under Section 94 of the Insolvency & …

**Ratio:** The RP's report recommended the admission of the application under Section 94 of the

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**Reasoning:** The NCLT considered the RP's report and was satisfied that there is a financial debt and

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**Interpretation:** Section 94 of the Insolvency & Bankruptcy Code, 2016, allows a debtor to

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**Application:** The RP's report confirmed that the Applicant is unable to pay her debts and

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Archana Lalit…
- **Respondents:** Creative Powertech…; Vakati Balasubrama…

## Timeline

- **2023-08-07 — Application…**: Mrs. Archana Lalit Palwe filed an application under Section 94(1) of the Insolvency &…
- **2023-04-12 — CIRP Admi…**: Creative Powertech Pvt. Ltd. was admitted into CIRP by NCLT, Mumbai Bench-IV under…

## Legal provisions

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

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