# In the matter of Bank of Baroda Vs. Ramesh Kumar Sarawagi, CP (IB)/96(KB)/2022

> NCLT judgment dated 2022-06-27. Citation: TCN-2022-NCLT-04637. Bank of Baroda filed an application under Section 95(1) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Jun 2022
- **Citation:** TCN-2022-NCLT-04637
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/bank-of-baroda-vs-ramesh-kumar-sarawagi-cp-a3954ae8

## Summary

### Background

Bank of Baroda filed an application under Section 95(1) 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, to initiate the Insolvency Resolution Process against Mr. Ramesh Kumar Sarawagi, the personal guarantor for Prithvi Ferro Alloys Private Limited (PFAPL).

## Facts

Bank of Baroda filed an application under Section 95(1) of the IBC against Ramesh Kumar Sarawagi, personal guarantor for Prithvi Ferro Alloys Private Limited (PFAPL).

The application seeks to initiate the Insolvency Resolution Process against the personal guarantor due to the failure to repay a debt of Rs. 16,89,01,410.32 as on 30/11/2021.

PFAPL, the principal borrower, had approached Bank of Baroda for credit facilities, which were extended based on representations made by PFAPL.

Ramesh Kumar Sarawagi executed a personal guarantee in favor of Bank of Baroda to secure the repayment of the credit facilities.

PFAPL was admitted under CIRP by the NCLT Kolkata Bench, and a resolution plan was approved on 03/05/2021.

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016, for initiating the Insolvency …

**Ratio:** Based on the facts presented and the provisions of the IBC, the application is

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**Reasoning:** The applicant has demonstrated that the personal guarantor has failed to repay the debt,

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**Interpretation:** Section 95(1) of the IBC allows for the initiation of the Insolvency Resolution

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**Application:** The application is admitted, and the process is initiated against the personal

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Bank of B…
- **Respondents:** Prithvi Ferro…; Ramesh Kumar…
- **Other parties:** Mahesh Chan…
- **Advocates:** Ramesh Chandra…; Swapna Ch…

## Timeline

- **2022-04-29 — Order Reser…**: Order Reserved on…
- **2022-06-27 — Order Pronou…**: Order Pronounced on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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