# In the matter of Mr. Surendra Agarwal, CP (IB) No. 25/94(1)/JPR/2022

> NCLT judgment dated 2022-05-31. Citation: TCN-2022-NCLT-04739. The case pertains to an application filed under Section 94 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 May 2022
- **Citation:** TCN-2022-NCLT-04739
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/mr-surendra-agarwal-cp-ib-no-25941jpr2022-3f126e0a

## Summary

### Background

The case pertains to an application filed under Section 94 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 Debtors) Rules, 2019, by Mr. Surendra Agarwal, the Applicant/Debtor, who is a personal guarantor to M/s Narayani Tor Pvt. Ltd. (Corporate Debtor).

## Facts

Mr. Surendra Agarwal filed an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, as a personal guarantor to M/s Narayani Tor Pvt. Ltd.

Bank of Baroda advanced a loan to M/s Narayani Tor Pvt. Ltd., which subsequently defaulted.

A notice under Section 13(2) of the SARFAESI Act, 2002, was issued to Mr. Surendra Agarwal by Bank of Baroda due to the corporate debtor's default.

Mr. Surendra Agarwal failed to fulfill his obligations under the personal guarantee within 60 days of the notice.

The amount of default is Rs. 5,84,22,267.87/- and the date of default is 02.11.2019.

The Adjudicating Authority declared an interim moratorium commencing from 16.03.2022.

Mr. Vishnu Upadhyay was appointed as the Resolution Professional.

## Issues and analysis

### Issue 1: Whether the application filed by Mr. Surendra Agarwal under Section 94(1) of the Insolvency and …

**Ratio:** The application is maintainable as the applicant is a personal guarantor to a corporate

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**Reasoning:** The applicant failed to fulfill his obligations pursuant to the personal guarantee given

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**Interpretation:** Section 94(1) allows a debtor to initiate insolvency resolution process when

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**Application:** The applicant's failure to fulfill his obligations under the guarantee makes

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** Surendra A…
- **Respondents:** Narayani Tor Pvt.…
- **Other parties:** Bank of B…; Vishnu Up…
- **Advocates:** Anurag Kala…; Akshita Ko…; +1 more

## Timeline

- **2019-09-04 — Notice D…**: Date of notice under section 13(2) of the…
- **2019-11-02 — Default…**: Date of default…

## 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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