# In the matter of Sudip Dutta Vs. State Bank of India Comp. App. (AT) (Insolvency)No. 807 of 2021

> NCLAT judgment dated 2022-07-29. Citation: TCN-2022-NCLAT-00318. The case involves two appeals (Company Appeal (AT) (Insolvency) No. 807 of 2021 and No. 740…

- **Court:** NCLAT
- **Order date:** 29 Jul 2022
- **Citation:** TCN-2022-NCLAT-00318
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudip-dutta-vs-state-bank-of-india-comp-app-558d2069

## Summary

### Background

The case involves two appeals (Company Appeal (AT) (Insolvency) No. 807 of 2021 and No. 740 of 2022) arising from proceedings initiated by State Bank of India against Sudip Dutta, the Appellant, as a Personal Guarantor of the Corporate Debtor, M/s Ess Dee Aluminum Limited. The Adjudicating Authority admitted an application filed by State Bank of India under Section 95(1) of the Insolvency and Bankruptcy Code (I&B Code), leading to the initiation of the insolvency resolution process against the Appellant. The Appellant challenged the orders passed by the Adjudicating Authority, primarily arguing that the Adjudicating Authority erred in recording a finding of default and that the I&B Code is not applicable to him as he obtained citizenship of Singapore after

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## Facts

Sudip Dutta, as a Director/Managing Director of M/s Ess Dee Aluminum Limited, executed a Deed of Guarantee on 19.10.2015, agreeing to pay a principal amount not exceeding Rs.50 Crore together with interest, cost, and expenses. State Bank of India issued a recall notice dated 05.03.2018 in respect of the loan given to the Corporate Debtor. An application under Section 7 against the Corporate Debtor was admitted by the NCLT, Kolkata Bench, on 14.02.2020. Sudip Dutta obtained citizenship of Singapore on 18.06.2018. State Bank of India filed an application under Section 95(1) of the I&B Code against Sudip Dutta as a Personal Guarantor. The Adjudicating Authority admitted the application and appointed a Resolution Professional. The Appellant challenged the order,

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## Issues and analysis

### Issue 1: Whether a Personal Guarantee given by the Appellant by Guarantee Deed dated 19.10.2015 shall …

**Ratio:** The principle of statutory interpretation dictates that a statute should be interpreted

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**Reasoning:** The Tribunal reasoned that allowing a personal guarantor to escape liability merely by

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**Interpretation:** The I&B Code's provisions regarding personal guarantees are interpreted to

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**Application:** The Appellant's argument that his Singaporean citizenship extinguished his

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** SUDIP DUTTA @…
- **Respondents:** M/s Ess Dee…; State Bank of…

## Timeline

- **2015-10-19 — Execution of Deed of…**: Sudip Dutta, as Director/Managing Director of M/s Ess Dee Aluminum Limited, executed a…
- **2018-03-05 — Recall N…**: State Bank of India issued a recall notice in respect of the loan given to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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