# Yes Bank Ltd. vs. Mr. Rajesh Madan

> NCLT judgment dated 2026-10-12. Citation: TCN-2026-NCLT-01238. Yes Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the IBC, 2016, to…

- **Court:** NCLT
- **Order date:** 12 Oct 2026
- **Citation:** TCN-2026-NCLT-01238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-principal-bench/yes-bank-ltd-vs-mr-rajesh-madan-yluok

## Summary

### Background

Yes Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the IBC, 2016, to initiate Personal Insolvency Resolution Process (PIRP) against Mr. Rajesh Madan, who is a personal guarantor for M/s Johnson Watch Company Private Limited (Corporate Debtor). The Corporate Debtor defaulted on credit facilities, leading to its account being classified as a Non-Performing Asset (NPA). Demand notices, including one under Section 13(2) of the SARFAESI Act, were issued to the Corporate Debtor and the personal guarantors. A Resolution Professional (RP) was appointed and submitted a report under Section 99 of the Code, recommending the admission of the application. Mr. Rajesh Madan, the Personal Guarantor, raised several objections, including the lack of valid

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## Facts

Yes Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the IBC, 2016, against Mr. Rajesh Madan (Personal Guarantor) to initiate Personal Insolvency Resolution Process (PIRP).

Mr. Rajesh Madan is a personal guarantor for M/s Johnson Watch Company Private Limited (Corporate Debtor), which availed various credit facilities from Yes Bank Ltd.

Mr. Rajesh Madan, Mr. Anil Madan, Mr. Manish Madan, and Mr. Ankit Madan executed Deeds of Personal Guarantees on 28.06.2013, 29.06.2016, 26.07.2017, and 26.06.2018.

The Corporate Debtor defaulted on payments, leading to its account being classified as a Non-Performing Asset (NPA) on 16.03.2023.

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## Issues and analysis

### Issue 1: Whether there was a valid invocation of the guarantee, and the default on part of the PG has been …

**Ratio:** A notice under Section 13(2) of the SARFAESI Act can constitute a valid invocation of

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**Reasoning:** The NCLAT, in Ujwal Gupta v. Union Bank of India and Anr. and Asha Basantilal Surana,

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**Interpretation:** The court interprets the SARFAESI notice as a valid invocation based on its

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**Application:** The NCLT applied the NCLAT's precedent to the facts, finding that the SARFAESI

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## Parties

- **Judges:** ANUPINDER SINGH…; RAVINDRA CHATURVED…
- **Appellants:** Yes Bank…; Mavent Restructuri…
- **Respondents:** M/s Johnson Watch…; Rajesh…
- **Other parties:** M/s Swiss…
- **Advocates:** Anand Shank…; Nandika K…; +9 more

## Timeline

- **2013-06-20 — Credit Facility…**: Yes Bank Ltd. sanctioned Cash Credit Facility to M/s Johnson Watch Company Private…
- **2013-06-28 — Guarantee Deeds…**: Mr. Rajesh Madan and others…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 100 — Admission or rejection of application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-100)

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