# Bank of Baroda vs. Farooq Ali Khan and Ors. > SC judgment dated 2025-02-20. Citation: TCN-2025-SC-00044. The case involves an appeal against a High Court order that interdicted personal insolvency… - **Court:** SC - **Order date:** 20 Feb 2025 - **Citation:** TCN-2025-SC-00044 - **Category:** IBC - **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/bank-of-baroda-vs-farooq-ali-khan-and-ors-042eaf08 ## Summary ### Background The case involves an appeal against a High Court order that interdicted personal insolvency proceedings initiated against the respondent under Section 95 of the Insolvency and Bankruptcy Code, 2016. The High Court had held that the respondent's liability as a guarantor had been waived. The appellant, Bank of Baroda, initiated the personal insolvency proceedings against the respondent, Farooq Ali Khan, who was a promoter and director of Associate Décor Limited. Corporate insolvency resolution proceedings were also initiated against Associate Décor Limited, but this appeal is restricted to the personal insolvency proceedings against Farooq Ali Khan. The corporate debtor had taken loans from the appellant and other banks, and the respondent had provided a … ## Facts The respondent, Farooq Ali Khan, was a promoter and director of Associate Décor Limited. Associate Décor Limited took loans from Bank of Baroda and other banks starting in 2010. Farooq Ali Khan provided a personal guarantee for these loans on 2014-07-10. Associate Décor Limited defaulted on payments, leading to the initiation of Corporate Insolvency Resolution Process (CIRP). Bank of Baroda issued a demand notice on 2020-08-11 and invoked the personal guarantee. The outstanding amount was Rs. 244 crores. Farooq Ali Khan and other guarantors offered Rs. 25 crores as full and final settlement on 2020-12-14. Bank of Baroda filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC) on 2021-02-22 to initiate personal insolvency proceedings against … ## Issues and analysis ### Issue 1: Whether the High Court correctly exercised its writ jurisdiction to interdict the personal … **Ratio:** The High Court should not interfere with the statutory process under the IBC, especially … **Reasoning:** The Supreme Court reasoned that the High Court's intervention was premature as it … **Interpretation:** The interpretation of the IBC provisions, particularly Sections 95 to 100, is … **Application:** In this case, the High Court incorrectly exercised its writ jurisdiction by … ## Parties - **Judges:** Pamidighantam Sri…; Manoj M… - **Appellants:** Bank of B… - **Respondents:** Associate Décor…; FAROOQ AL… - **Other parties:** Over Tu… - **Advocates:** Tushar…; Shyam M… ## Timeline - **2010-01-01 — Loan Commen…**: Corporate debtor took various loans from the… - **2014-07-10 — Deed of Gua…**: Respondent no. 1 entered into a deed of… ## 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) --- This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/bank-of-baroda-vs-farooq-ali-khan-and-ors-042eaf08