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Personal Guarantor’s Plea for Lending Documents Dismissed – NCLAT Finds Inspection Sufficient

Case Law Details

TaxGuru Citation
2025 taxguru.in 9850
Case Name
Rajesh Jain Vs Bank of Baroda (NCLAT Delhi)
Date of Judgement/Order
Only available for paid members
Courts
Delhi NCLAT, NCLAT
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Rajesh Jain Vs Bank of Baroda (NCLAT Delhi)

The National Company Law Appellate Tribunal (NCLAT), Delhi, in the case of Rajesh Jain Vs Bank of Baroda, dismissed two appeals filed by personal guarantors challenging an order from the Mumbai bench of the National Company Law Tribunal (NCLT). The appeals arose from proceedings initiated by the Bank of Baroda under Section 95 of the Insolvency and Bankruptcy Code, 2016, against the personal guarantors. The guarantors had sought to direct the bank, the financial creditor, to provide certain lending documents to verify the amount repaid. The NCLT had rejected the applications but, in its order dated August 13, 2025, directed the concerned bank to provide inspection of the documents within two weeks if the personal guarantors applied for it. The guarantors appealed, arguing the NCLT should have directly granted the document access. The NCLAT, after review, held that the NCLT’s order adequately protected the appellant’s interest by permitting inspection. The Tribunal found no basis for interfering with the lower court’s directive, emphasizing that the appellants are free to make a request to the bank in light of paragraph 3 of the NCLT order, and the bank is obliged to comply. Consequently, the NCLAT dismissed both appeals, upholding the NCLT’s direction for document inspection rather than mandatory document provision.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,136

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