# In the matter of Axis Bank Ltd. vs. Prahalad Veljibhai Patel

> NCLT judgment dated 17 Jan 2024. Citation: TCN-2024-NCLT-03031. This is an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 17 Jan 2024
- **Citation:** TCN-2024-NCLT-03031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/axis-bank-ltd-vs-prahalad-veljibhai-patel-0c2c3450

## Summary

### Background

This is an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016 by Axis Bank Limited, the creditor, against Prahalad Veljibhai Patel, the personal guarantor of Ambition Mica Limited. The personal guarantor executed a deed of guarantee on March 30, 2018. The amount of default is Rs. 23,55,97,901/-. The applicant served a demand notice under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantor to Corporate Debtor) Rules, 2019 on April 18, 2023. The date of default mentioned in the application is June 17, 2022.

## Facts

Axis Bank Limited filed an application under Section 95 of the IBC, 2016 against Prahalad Veljibhai Patel, who is the personal guarantor of Ambition Mica Limited. The personal guarantor executed a deed of guarantee on March 30, 2018. The amount of default is Rs. 23,55,97,901/-. The applicant issued a demand notice under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantor to Corporate Debtor) Rules, 2019 on April 18, 2023. The date of default mentioned in the application is June 17, 2022. The applicant filed an affidavit stating that notice had been served on the personal guarantor. The court appointed Mr. Rathin Amishbhai Majmudar as the Resolution Professional. The Resolution Professional is required to

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the IBC, 2016 by the creditor against the …

**Ratio:** Section 95 of the IBC, 2016 allows a creditor to initiate insolvency resolution process

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**Reasoning:** The court considered the application filed by the creditor under Section 95 of the IBC,

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**Interpretation:** Section 95 provides a mechanism for creditors to recover their dues from

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**Application:** The court applied the provisions of Section 95 to the facts of the case, where

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Axis Bank L…
- **Respondents:** Ambition Mica…; Prahalad Veljibhai…

## Timeline

- **2018-03-30 — Deed of Guarantee…**: The Personal Guarantor…
- **2022-06-17 — Date of D…**: The date of default is…

## 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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