Section 95 IBC: NCLAT Chennai Bars Consecutive Insolvency Applications Against Same Guarantor

In a recent judgment, the National Company Law Appellate Tribunal (NCLAT) in Chennai addressed a significant issue concerning the initiation of insolvency resolution proceedings under the Insolvency and Bankruptcy Code (I & B Code). The case, titled "Indian Bank v. K R Tirumuruhan" (Company Appeal (AT) (CH) (Ins) No.150/2025), highlights the legal complexities and precedents set in insolvency matters, particularly when multiple financial creditors seek to initiate proceedings against the same personal guarantor.

Case Background

The case involves Indian Bank, the financial creditor, and K R Tirumuruhan, a personal guarantor. Indian Bank, through its Stressed Assets Management Branch in Chennai, sought to initiate insolvency resolution proceedings against K R Tirumuruhan under Section 95 of the I & B Code. The application was filed before the National Company Law Tribunal (NCLT), Chennai Bench, in case number CP(IB)80/2024. However, the NCLT dismissed the