# In the matter of Union Bank of India Vs. Shaji Purushothaman, CP (IB) 73/2021

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-04655. The application was filed by Union Bank of India, the Financial Creditor, under Section 95 of…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-04655
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-ii-che/union-bank-of-india-vs-shaji-purushothaman-cp-fc776a4d

## Summary

### Background

The application was filed by Union Bank of India, the Financial Creditor, under Section 95 of the Insolvency & Bankruptcy Code, 2016, against Shaji Purushothaman, the Personal Guarantor of the Corporate Debtor, Empee Distilleries Limited.

## Facts

Union Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy Code, 2016 against Shaji Purushothaman.

The application is against the personal guarantor of Empee Distilleries Limited, the Corporate Debtor.

Demand was made on the personal guarantor on 17.10.2020.

The Personal Guarantor executed the Deed of Guarantee on 08.02.2016.

A Demand Notice was issued under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 to the Personal Guarantor on 17.10.2020.

The Financial Creditor placed on file the CRILIC Report dated 02.01.2019.

Mr. Madhu Desikan was appointed as the Interim Resolution Professional.

…

## Issues and analysis

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

**Ratio:** As per (Insolvency) No. 316 of 2021, once an application under Section 95 of IBC, 2016 is

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**Reasoning:** The Adjudicating Authority is bound to act on the application filed under Section 95 of

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**Interpretation:** The Adjudicating Authority must proceed with the application following the

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**Application:** The Adjudicating Authority has to give limited notice to the Personal Guarantor

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** Union Bank of…
- **Respondents:** Empee Distilleries…; Shaji Purushothama…
- **Other parties:** Madhu De…
- **Advocates:** M. Muthupe…; Rohan Rajas…

## Timeline

- **2020-10-17 — Demand M…**: Demand was made on the…
- **2016-02-08 — Deed of Gua…**: Personal Guarantor…

## 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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