Kiran Kumar Jain Vs Cosmos Co-Operative Bank Ltd. & Anr. (NCLAT Delhi)
NCLAT Delhi held that bank can proceed against one or all personal guarantors of Corporate Debtor u/s. 95. Merely because bank proceeded against only one personal guarantor cannot be any reason to reject any application u/s. 95 of IBC.
Facts- This appeal by a personal guarantor has been filed challenging the order dated 01.07.2025 passed by the adjudicating authority (National Company Law Tribunal, Mumbai Bench – I) admitting Section 95 application filed by the financial creditor, Cosmos Cooperative Bank Limited & Anr. By the impugned order, adjudicating authority after considering the Report of Resolution Professional (RP) admitted Section 95 application by passing an order under Section 100 of the Insolvency and Bankruptcy Code, 2016. Aggrieved by the order admitting Section 95 application, this appeal has been filed by the personal guarantor.
Conclusion- The fact that application for recovery of the debt filed by the bank before the DRT is pending along with counter claim filed by the appellant does not preclude the bank from initiating proceeding Section 95 of the IBC which is separate remedy provided by the bank.
Held that it is for the bank to proceed against one or all personal guarantors of a corporate debtor under Section 95 and the mere fact that bank has proceeded against the appellant cannot be any reason to reject any application under Section 95 filed by bank against one personal guarantors. We, thus do not find any ground raised by the appellant warranting any interference with the order of the adjudicating authority admitting Section 95 application.
