# In the matter of Tata Motors Finance Limited vs. Rajwanth Ben & Ors.

> NCLT judgment dated 2025-11-03. Citation: TCN-2025-NCLT-01692. Tata Motors Finance Limited filed petitions against Mr. Rajwanth Ben and Mrs. Molly G, who are…

- **Court:** NCLT
- **Order date:** 3 Nov 2025
- **Citation:** TCN-2025-NCLT-01692
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/tata-motors-finance-limited-vs-rajwanth-ben-ors-c9ecc9f7

## Summary

### Background

Tata Motors Finance Limited filed petitions against Mr. Rajwanth Ben and Mrs. Molly G, who are personal guarantors to Malayalam Vehicles India Private Limited, the Corporate Debtor, for a debt of Rs. 2,56,37,953.21/-. The petitions were filed under Section 95 of the IBC, 2016.

## Facts

Tata Motors Finance Limited filed petitions against Mr. Rajwanth Ben and Mrs. Molly G as personal guarantors.

The Corporate Debtor is Malayalam Vehicles India Private Limited.

The debt amount is Rs. 2,56,37,953.21/-.

The petitions were filed under Section 95 of the IBC, 2016.

The respondents argued that the application was premature due to the ongoing CIRP of the Corporate Debtor.

The respondents claimed the debt was secured and the securities should be exhausted first.

The petitioner argued that proceedings against personal guarantors are independent of the CIRP of the Corporate Debtor.

The NCLT admitted the petitions and initiated the Insolvency Resolution Process against the personal guarantors.

A moratorium was declared.

## Issues and analysis

### Issue 1: Whether the application under Section 95 of the IBC is premature due to the ongoing CIRP of the …

**Ratio:** The mere admission or pendency of CIRP proceedings does not discharge, defer, or affect

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**Reasoning:** The NCLT relied on the Supreme Court's decision in Lalit Kumar Jain v. Union of India

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**Interpretation:** Proceedings against personal guarantors are independent and can run parallel to

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**Application:** The NCLT rejected the respondents' argument that the application was premature

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## Parties

- **Judges:** Shri. Vina…; Madhu S…
- **Appellants:** Tata Motors…
- **Respondents:** M/s Malayalam…; Rajwant…; +1 more
- **Other parties:** Rakesh Kumar…
- **Advocates:** Pooja P…; Anil D…

## Timeline

- **2023-03-15 — Channel Finance…**: Channel Finance Facility of Rs. Four Crores was credited to Malayalam Vehicles India…
- **2023-03-18 — Deed of Gua…**: Respondents executed a…

## 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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