# In the matter of Bank of Maharashtra Vs. V Ramesh (Versatile Mobile Distributors Private Limited) , CP (IB)/371/95/HDB/2022

> NCLT judgment dated 2023-06-14. Citation: TCN-2023-NCLT-05452. The Financial Creditor, Bank of Maharashtra, filed a petition under Section 95 of the…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-05452
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/bank-of-maharashtra-vs-v-ramesh-097088eb

## Summary

### Background

The Financial Creditor, Bank of Maharashtra, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking initiation of Insolvency Resolution Process against Shri V. Ramesh, the Personal Guarantor of M/s. Versatile Mobile Distributors Private Limited.

## Facts

Bank of Maharashtra sanctioned working capital facilities to Versatile Mobile Distributors Private Limited, including a Cash Credit facility of Rs. 885 Lakhs and a Bank Guarantee Limit of Rs. 550 Lakhs.

The corporate debtor, Versatile Mobile Distributors Private Limited, failed to honor its obligations towards the Financial Creditor, and its loan account was declared NPA on 31.12.2016.

Shri V. Ramesh, the Personal Guarantor, executed a Deed of Guarantee on 20.08.2015 to secure the financial assistance granted by the Financial Creditor to Versatile Mobile Distributors Private Limited.

The Financial Creditor issued a Form B demand notice dated 08.06.2022 to Shri V. Ramesh, the personal guarantor, for the outstanding amount.

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## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** The Adjudicating Authority can order Insolvency Resolution Process against the Personal

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**Reasoning:** The Personal Guarantor failed to offer any repayment plan or file objections to the

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**Interpretation:** Section 100 of the Insolvency and Bankruptcy Code, 2016 allows for the

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**Application:** The Adjudicating Authority admitted the petition and initiated Insolvency

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** Versatile Mobile…; Shri. V R…
- **Other parties:** Murali Mohan…
- **Advocates:** Varun A…

## Timeline

- **17.08.2015 — Sanction…**: Bank of Maharashtra issued a sanction letter for Cash Credit Limit and Bank Guarantee…
- **20.08.2015 — Deed of Gua…**: Shri V. Ramesh executed…

## 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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