# In the matter of Abhyudaya Co-Op. Bank Limited vs. Ritadevi Devilal Chapagain

> NCLT judgment dated 2025-07-08. Citation: TCN-2025-NCLT-00819. Abhyudaya Co-Op. Bank Limited filed a petition under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Jul 2025
- **Citation:** TCN-2025-NCLT-00819
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/abhyudaya-co-op-bank-limited-vs-ritadevi-devilal-chapagain-a2d02bb7

## Summary

### Background

Abhyudaya Co-Op. Bank Limited filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mrs. Ritadevi Devilal Chapagain, the Personal Guarantor, for default of Rs. 50,23,81,797.97 as on 29.02.2024. The application was filed on 21.05.2024.

## Facts

Abhyudaya Co-Op. Bank Limited filed a petition under Section 95(1) of the IBC against Mrs. Ritadevi Devilal Chapagain, a personal guarantor.

The claim amount was Rs. 50,23,81,797.97 as on 29.02.2024.

The Corporate Debtor is M/s. Protocol Marine Services Private Limited (now under liquidation).

The bank had extended various credit facilities to the Corporate Debtor, secured by personal guarantees.

The Corporate Debtor underwent CIRP, and subsequently, liquidation was ordered.

The Resolution Professional was appointed and submitted a report recommending the admission of the petition.

The Respondent admitted to not making any payments after receiving the demand notice.

The Tribunal found that the guarantee was not invoked prior to the issuance of the demand notice.

## Issues and analysis

### Issue 1: Whether the application under Section 95 of the IBC against the personal guarantor is maintainable …

**Ratio:** The application is not maintainable if the guarantee was not invoked prior to the

…

**Reasoning:** The Tribunal relied on the NCLAT's decision in State Bank of India v. Deepak Kumar

…

**Interpretation:** The invocation of the guarantee is a prerequisite for initiating proceedings

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**Application:** Since the guarantee was not invoked prior to the issuance of the demand notice,

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## Parties

- **Judges:** V.G. B…; SH. PRABHAT…
- **Appellants:** Abhyudaya Co-Op.…
- **Respondents:** Protocol Marine…; Ritadevi Devilal…
- **Other parties:** Manish Lalji…; Harish Kant…
- **Advocates:** Shreyansh…; Maulik Ch…

## Timeline

- **2024-02-29 — Date of D…**: The amount of default was Rs.…
- **2024-03-14 — Demand Noti…**: Demand notice was issued to…

## 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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