Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(NCLT) 2870

NATIONAL COMPANY LAW TRIBUNAL
SANGITA NARULA – Appellant
Versus
RAVI KUMAR JAIN – Respondent
IA(I.B.C) - 2026/2024

Advocates:
For the Petitioner:MUKESH KAUSHIK
For the Respondent:Karan kaushal

Insolvency and Bankruptcy Code mandates proper invocation of a personal guarantee for a valid petition under Section 95; an incomplete petition invalidates the interim moratorium and the insolvency process.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 95 - Personal Guarantee - Initiation of Personal Insolvency Resolution Process against a personal guarantor due to default by corporate debtor is maintainable, given that the petition lacks requisite invocation notice to the guarantor - The court dismissed the petition for insolvency resolution process after finding it incomplete and non-maintainable, as no effective notice of guarantee invocation was issued prior to the petition. (Paras 20 and 23)

(B) Moratorium - Under Section 96 - Interim moratorium triggered upon filing of the petition is to protect assets during the process; however, if the petition is incomplete, the moratorium is rendered invalid.

Facts of the case:
Petition was presented under Section 95 claiming default amounting to Rs.9,97,31,150/- by personal guarantor and other guarantors; the applicant contended that the sale of the guarantor’s property by the lender during the moratorium was invalid. However, due to lack of proper invocation of the personal guarantee and missing documentation, the petition was dismissed as non-maintainable. (Paras 2-24)

Findings of Court:
The petition could not have been sustained due to non-invocation of the guarantee and failure to attach critical documents, rendering it invalid from inception. The interim moratorium on legal proceedings could not protect the sale of the property because the petition itself was flawed. (Paras 23-24)

Issues: Was the demand notice to the personal guarantor valid and did the petition comply with Section 95 requirements? Was the property sale valid despite the alleged interim moratorium? (Paras 19-22)

Ratio Decidendi: The court ruled that for the insolvency process against a guarantor's entry, proper invocation of the guarantee is paramount, and failure to do so compromises the validity of the petition filed under IBC. (Paras 20-24)

Result: Petition dismissed as non-maintainable; related applications rendered infructuous.

Table of Content
1. petition filed under section 95 of ibc. (Para 1 , 2 , 3 , 5)
2. objections regarding sfspl's claims are presented. (Para 6 , 7 , 8)
3. application details and background on the property. (Para 9 , 10 , 11)
4. personal guarantor's arguments against ubi's actions. (Para 12 , 13 , 14 , 15)
5. court's analysis of the application and decisions. (Para 18 , 19 , 20 , 21 , 22 , 23)
6. final judgment and dismissal of the petition. (Para 24 , 25)

THE NATIONAL COMPANY LAW TRIBUNAL CHANDIGARH BENCH, Court-I, CHANDIGARH (Exercising powers of Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016)

(through web-based video conferencing platform)

CP (IB) No. 178/Chd/Hry/2021 and I.A. No. 2026/2024 & I.A. No. 2027/2024 Under Section 95 of the Insolvency and Bankruptcy Code, 2016 and Rule 11 of NCLT Rules, 2016 In the matter of C.P.(IB) No.178/Chd/Hry/2021:

Siemens Financial Services Private Limited Having its registered office at:

Plot No.2, Sector No.2, Khargar Node, Navi Mumbai 410210 …Petitioner Vs.

Ravi Kumar Jain M/s RCC Infraventures Ltd. 14, Ground Floor Vipul Agora M.G. Road, Sector -28, Gurgaon, Haryana - 122002 …Guarantor Also at:

GV-02, The Palm Springs, Golf Course Road, Opposite IBIS Hotel, Sector- 54 Galleria DLF-IV, Gurgaon- 122009Also at:

RCC Infraventures Ltd., KM 54 Haridwar Nagina Road Colony Opposite PNS Arhiant School (Camp 02), Village Sarvanpur Najibabad, Uttar Pradesh- 246763 Also at:

RCC Hari Agro Ventures India Pvt. Ltd.

A-2, 3rd Floor, Panchsheel Apartment Vaibhav Nagar, Agra Uttar Pradesh- 282001 Also at:

Vardhman Resorts Pvt. Ltd.

3A, Manglik Colony, Vaibhav Nagar, Agra Uttar Pradesh- 282001 In the matter of I.A. 2026 of 2024:

Smt. Sangita Narula W/o Shri Praveen Kumar Narula R/o 45, North Avenue, Punjabi Bagh New Delhi- 26 …Applicant Vs.

1. Ravi Kumar Jain RCC Infraventures Ltd.

14, Ground Floor Vipul Agora M.G. Road, Sector 28, Gurgaon Haryana- 122001 Also at:

R/o Villa Apartment No. TPV-G-GV-GV02, The Palm Springs, situated in the Revenue Estate of Village Wazirabad, Tehsil & District - Gurgaon (Haryana)

…Respondent No.1/Personal Guarantor

2. Siemens Financial Services Private Limited Having its registered office at:

Plot No.2, Sector No.2, Khargar Node, Navi Mumbai- 410210 …Respondent No.2

3. Union Bank of India Through its Authorized Officer, Union Bank of India Stressed Assets Management Branch

2nd Floor, Sharda Tower, Kapoorthala, Aliganj, Lucknow, Uttar Pradesh -226024 …Respondent No.3 And in the matter of I.A. 2027 of 2024:

Ravi Kumar Jain Son of Lat Sh. Radhey Lal Jain Director cum Guarantor of M/s RCC Infraventures Ltd R/o Villa Apartment No. TPV-G-GV-GV02, The Palm Springs, situated in the Revenue Estate of Village Wazirabad, Tehsil & District - Gurgaon (Haryana)

…Applicant/Personal Guarantor Vs.

1. Union Bank of India The Authorized Officer, Union Bank of India Stressed Assets Management Branch

2nd Floor, Sharda Tower, Kapoorthala, Aliganj, Lucknow, Uttar Pradesh -226024 …Respondent No.1

2. Smt. Sangita Narula W/o Sh. Parveen Kumar Narula R/o 45, North Avenue, Punjabi Bagh West New Delhi - 110026 …Respondent No.2 3. Smt. Neeru Jain W/o Sh. Ravi Kumar Jain R/o Villa Apartment No. TPV-G-GV-GV02, The Palm Springs, situated in the Revenue Estate of Village Wazirabad, Tehsil & District - Gurgaon (Haryana), …Proforma Respondent No.3 4. RCC INFRAVENTURE LTD

3A, Manglik Colony, Vibhav Nagar, Agra, Uttar Pradesh Also At:

14, ground floor, Vipul Agora M.G. Road, Sector -28, Gurgaon, Haryana - 122002 (Under CIRP represented through R.P.)

... Proforma Respondent No.4

5. Siemens Financial Services Private Limited Having its registered office at:

Plot No.2, Sector No.2, Khargar Node, Navi Mumbai 410210 ...Respondent No.5 Judgment delivered on: 04.07.2025 Coram: HON’BLE MR. HARNAM SINGH THAKUR, MEMBER (JUDICIAL)

HON’BLE SH. SHISHIR AGARWAL, MEMBER (TECHNICAL)

Present:

For the RP in main petition: Mr. Sanjeev Kataria, Advocate Mr. Gulshan Kumar Gupta, RP-in-person For the Petitioner in main petition: Mr. Raj Kumar Narang,

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2025 Supreme(Online)(NCLT) 2870

NATIONAL COMPANY LAW TRIBUNALSANGITA NARULA – AppellantVersusRAVI KUMAR JAIN – RespondentIA(I.B.C) - 2026/2024

Insolvency and Bankruptcy Code mandates proper invocation of a personal guarantee for a valid petition under Section 95; an incomplete petition invalidates the interim moratorium and the insolvency process.

NATIONAL COMPANY LAW TRIBUNAL
SANGITA NARULA – Appellant
Versus
RAVI KUMAR JAIN – Respondent
IA(I.B.C) - 2026/2024