---
title: "Application Under Section 95 Of IBC Cannot Be Rejected Solely On The Grounds Of Non Stamping Or Insufficient Stamping Of Deed Of Guarantee When The Default Had Been Satisfactorily Established."
date: 2024-08-03
author: "Shradha Patil"
url: https://www.indialaw.in/blog/insolvency-bankruptcy/ibc-sec-95-application-valid-despite-deeds-stamp-deficiency/
---

# Application Under Section 95 Of IBC Cannot Be Rejected Solely On The Grounds Of Non Stamping Or Insufficient Stamping Of Deed Of Guarantee When The Default Had Been Satisfactorily Established.

Posted On - 3 August, 2024 •

By - [Shradha Patil](https://www.indialaw.in/author/shradha-patil/ "Posts by Shradha Patil")

[![IBC Section 95 application validity despite stamp deficiency in guarantee deeds](https://www.indialaw.in/wp-content/uploads/IBC-Sec.-95-Application-Valid-Despite-Deeds-Stamp-Deficiency.png)](https://www.indialaw.in/wp-content/uploads/IBC-Sec.-95-Application-Valid-Despite-Deeds-Stamp-Deficiency.png)

## Introduction

In the case of **State Bank of India v. Mamta Kishore Apparao[**[i]**](#_edn1)**,  the Hon’ble NCLT held that the defect as to insufficient/non-stamping of Guarantee Deeds is a curable defect and thus cannot be a sole ground for rejection of application under Section 95 of the Code.

## Brief Facts

State Bank of India (Petitioner) filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016 read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (‘PG AAA Rules’) for initiating Personal Guarantor’s Insolvency Resolution Process (‘PGIRP’) against Mamta Apparao (Respondent).

Petitioner granted cash credit facility and various term loans to TAG Offshore Limited (Corporate Debtor) who is engaged into business activities pertaining to travel industry. The Respondent executed various deeds of guarantee in favour of the Applicant qua the cash credit facility and various other term loans availed by the Corporate Debtor.

On account of failure of Corporate Debtor to comply with the obligations towards the credit facility, the Petitioner issued a legal notice dated 06.03.20219 and invoked the guarantees issued by the Respondent. Despite invoking guarantee, the Respondent failed to comply with the demands and continued to remain in default. Thus, this application was filed by the Petitioner under Section 95 of the Insolvency & Bankruptcy Code.

## Contentions of both Parties

The Petitioner’s Counsel submitted that the despite the invocation of personal guarantee, the Respondent failed to honour its guarantee obligation and continued to remain in default. Counsel for Petitioner while relying on the Resolution Professional’s report submitted that despite the intimation given by RP to show the proof of payment made, the Respondent had failed to rebut the factum of default. The learned RP had recommended for acceptance of his report under Section 99 of the Code.

The Respondent’s Counsel in his reply contested Petition as well as Report of the RP. The Respondent pleaded that the Deed of Guarantees were either not stamped or insufficiently and inadequately stamped therefore, are inadmissible in evidence as per Section 34 or the Maharashtra Stamps Act, 1958. The Respondent relied on the judgement of **N.N. Global Mercantile Private Limited v. Indo Unique Flame Ltd & Ors.[**[ii]**](#_edn2)**, where it was held that agreements lacking proper stamping or inadequate stamping are deemed to be inadmissible in evidence as per section 35 of Indian Stamp Act. The Respondent further pleaded that Respondent being a suspended director has no access to the details of repayment of alleged outstanding dues, therefore not being in a position to ascertain the status of loan in question.

## Decision of NCLT :-

The Hon’ble NCLT observed that the Deed of Guarantee prove the existence of debt and the guarantee obligation of the Respondent towards Petitioner regarding debt owned by the Corporate Debtor.

The Hon’ble NCLT dismissed the Respondent’s contentions that the deed of guarantees were unstamped or insufficiently stamped, making them inadmissible under Section 34 of the Maharashtra Stamp Act, 1958 and further observed that the liability to pay the stamp duty on the Deed of Guarantees shall be borne by person executing the instrument. If the Respondent has not paid the sufficient stamp duty cannot now resist the Petition. The Hon’ble NCLT further observed that the proceedings before Adjudicating Authority were of summary in nature, and as the IBC, 2016 is a complete code in itself, the provisions of the Code of Civil Procedure, 1908 and the Indian Evidence Act, 1872 does not strictly apply to the proceedings.

The Hon’ble NCLT referred to the judgement of **Innoventive Industries Ltd. v. ICICI Bank & Anr.[**[iii]**](#_edn3)**, and noted in the context of the present case that, the issue of debt being due and payable is not interdicted by any law, but only a technical defect of non-stamping or insufficient stamping has been raised which can be cured. Thus, this petition could not be rejected solely on the grounds of insufficient stamping when the default had been satisfactorily established.

The Hon’ble NCLT further observed that the Hon’ble Apex Court in **N.N. Global Mercantile Private Limited** (Supra) held that agreements which are not stamped or inadequately stamped are void, but further held that non-stamping or inadequate stamping is a curable defect.

Thereby, Hon’ble NCLT admitted the Petition and initiated the Insolvency Resolution process against the Personal Guarantor.

---

[[i]](#_ednref1) CP (IB) No. 101/MB/2021 and IA No. 762 of 2022.

[[ii]](#_ednref2) 2023 SCCOnLine SC 1666

[[iii]](#_ednref3) (2018) 1 SCC 407

[Download PDF](https://www.indialaw.in/blog/insolvency-bankruptcy/ibc-sec-95-application-valid-despite-deeds-stamp-deficiency//pdf/)

---

# IndiaLaw LLP — Offices & Contact Details

---

## General Contact

| | |
|---|---|
| **Website** | https://www.indialaw.in |
| **Primary email** | contact@indialaw.in |
| **Primary phone** | +91 836-9995919 |
| **Contact form** | https://www.indialaw.in/connect/ |
| **Careers (separate channel)** | https://www.indialaw.in/careers/ |


---

## All Offices (9 locations across 8 cities)

### 1. Mumbai — Registered Office & Head Office (Apeejay Chambers)

| | |
|---|---|
| **Address** | Apeejay Chambers, Ground Floor, Wallace Street, Fort, Mumbai – 400 001 |
| **Phone** | [022-6924-7400](tel:02269247400) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate · IP |
| **Notes** | The HQ. 5 partners based here. Handles PAN-India litigation, arbitration, corporate, banking, IP and real estate practice. Largest team across all offices. |

### 2. Mumbai — Non-Litigation Office (Excelsior, Fort)

| | |
|---|---|
| **Address** | 4th Floor, New Excelsior Theatre Pvt. Ltd., Amrit Keshav Nayak Marg, Fort, Mumbai – 400 001 |
| **Phone** | [022-697-40500](tel:022-697-40500) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Non-litigation only — consultations, negotiations, transactional work |
| **Notes** | Opened 2024. Litigation and arbitration remain at the Apeejay Chambers head office. |

### 3. Delhi

| | |
|---|---|
| **Address** | Flat No. 1107 & 1108, Prakashdeep Building, Tolstoy Marg, Connaught Place, New Delhi – 110 001 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/delhi/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate |
| **Notes** | 3 partners based here. Located near the Supreme Court of India, Delhi High Court and other appellate bodies. |

### 4. Kolkata

| | |
|---|---|
| **Address** | Centre Point Building, Room No. 214, 2nd Floor, Premises No. 21, Hemanta Basu Sarani, Opp. Great Eastern Hotel, P.S. Hare Street, Kolkata – 700 001, West Bengal |
| **Phone** | [+91 33 4813 1001](tel:+913348131001) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/kolkata/ |
| **Practice focus** | Insolvency & Bankruptcy · Commercial & Civil Litigation · Arbitration · Banking Litigation · Real Estate · Labour & Employment · Consumer |
| **Notes** | Advises banks, NBFCs, MSMEs and corporates on transactions and dispute resolution. Works in close coordination with the Mumbai HO. |

### 5. Chennai

| | |
|---|---|
| **Address** | GF-A, 19 Casa Major Road, Egmore, Chennai – 600 008 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/chennai/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Full-fledged office with experienced legal team. Supported by Mumbai HO. |

### 6. Bengaluru (Bangalore)

| | |
|---|---|
| **Address** | INDIALAW LLP, No. 7 Chinnaswamy Mudaliar Road, Shivaji Nagar, Bangalore – 560 051 |
| **Phone** | [080-4167-2444](tel:08041672444) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/bengaluru/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate · Family Laws · Labour |
| **Notes** | Located near Bangalore High Court. Handles corporate, commercial, banking and matrimonial disputes. |

### 7. Hyderabad

| | |
|---|---|
| **Address** | 403, 4th Floor, Sanatana Ecstasy Building, beside Tanishq Show Room, Himayathnagar, Hyderabad – 500 029, Telangana |
| **Phone** | [040-6666-5166](tel:04066665166) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/hyderabad/ |
| **Practice focus** | Litigation · Banking · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Particularly well known for complex banking matters and real estate transactions. |

### 8. Cochin (Kochi)

| | |
|---|---|
| **Address** | Second Floor, Pulikkal Building, K.K. Padmanabhan Road, Ernakulam North – 682 018, Kerala |
| **Phone** | [0484-3583961](tel:04843583961) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/cochin/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Commercial disputes, property litigation, financial-claim arbitrations and real estate transactions. |

### 9. Noida (NCR)

| | |
|---|---|
| **Address** | No. 16 & 17, Silver Offices, 17th Floor, Wave One, Sector 18, Noida – 201 301 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/noida/ |
| **Practice focus** | Aviation · Insurance · Mergers & Acquisitions · Corporate |
| **Office head** | **Mr. Dinesh Gupta** (joined August 2025 to lead and expand the corporate practice) |
| **Notes** | Newest office. Sector-focused on highly regulated industries serving NCR-based clients. |

---

## Quick-Dial Phone List

| Office | Phone |
|---|---|
| Mumbai HO (Apeejay) | 022-6924-7400 |
| Mumbai Excelsior | 022-697-40500 |
| Kolkata | +91 33 4813 1001 |
| Bengaluru | 080-4167-2444 |
| Hyderabad | 040-6666-5166 |
| Cochin | 0484-3583961 |
| **General / Marketing line** | **+91 836-9995919** |

Delhi, Chennai and Noida route through the general number.

---

## Social Channels

- LinkedIn: https://www.linkedin.com/company/indialaw
- X / Twitter: https://twitter.com/Indialawmumbai
- Facebook: https://www.facebook.com/indialawllp/
- Instagram: https://www.instagram.com/indialawllp

---