# In the matter of Central Bank of India Vs. Upender Kumar Agarwal, CP (IB) No. 246/2021

> NCLT judgment dated 2022-04-21. Citation: TCN-2022-NCLT-04938. Central Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Apr 2022
- **Citation:** TCN-2022-NCLT-04938
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/central-bank-of-india-vs-upender-kumar-agarwal-cp-8e130ea8

## Summary

### Background

Central Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Insolvency Resolution Process against Upender Kumar Agarwal, the personal guarantor of Rajvir Industries Ltd, the Corporate Debtor.

## Facts

Central Bank of India, the Financial Creditor, filed a petition under Section 95 of the IBC against Upender Kumar Agarwal, the Personal Guarantor of Rajvir Industries Ltd.

The Financial Creditor had sanctioned a term loan of Rs. 20 crores to the Corporate Debtor in 2009, which was to be repaid by July 2014.

Upender Kumar Agarwal stood as a guarantor to secure the repayment of the financial assistance availed by the Corporate Debtor.

The Corporate Debtor's account was classified as NPA on 29.06.2018, and the personal guarantee was invoked by the Financial Creditor.

The Financial Creditor issued a demand notice on 09.06.2021 and an addendum notice on 19.08.2021 to the Personal Guarantor.

The NCLT appointed Dr. Kondapalli Venkat Srinivas as Interim Resolution Professional.

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## Issues and analysis

### Issue 1: Whether Insolvency Resolution Process can be ordered …

**Ratio:** The NCLT considered the availing of credit facilities by the Corporate Debtor, the

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**Reasoning:** The NCLT noted that the Respondent No.2 admitted the claim of the Financial Creditor

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**Interpretation:** The NCLT interpreted the facts to support the initiation of the Insolvency

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**Application:** The NCLT applied the provisions of Section 95 of IBC to order the Insolvency

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Central Bank of…
- **Respondents:** Rajvir Industries…; Upender Kumar…
- **Other parties:** State Bank of…; Kondapalli Venkat…; +2 more
- **Advocates:** P. Ramakr…; S. Rajago…

## Timeline

- **2009 — Loan San…**: Financial Creditor sanctioned an amount…
- **2014-07 — Repayment D…**: The loan was required to…

## 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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