# In the matter of Tejinder Singh Saini & Ors. vs. State Bank of India & Anr.

> NCLAT judgment dated 2023-12-08. Citation: TCN-2023-NCLAT-00042. Two appeals, Comp. App. (AT) (Ins) No. 660 of 2022 and Comp. App. (AT) (Ins.) No. 1021 of…

- **Court:** NCLAT
- **Order date:** 8 Dec 2023
- **Citation:** TCN-2023-NCLAT-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tejinder-singh-saini-ors-vs-state-bank-of-india-anr-9a7b9535

## Summary

### Background

Two appeals, Comp. App. (AT) (Ins) No. 660 of 2022 and Comp. App. (AT) (Ins.) No. 1021 of 2022, were filed against the admission of applications under Section 95(1) of the Insolvency & Bankruptcy Code, 2016, read with Regulation 4(2) of IBBI Regulations, 2019, by the State Bank of India for initiation of Insolvency Resolution Process against the Appellants, who are Personal Guarantors of M/s Modern India Con-Cast Limited. The Impugned Orders dated 11.02.2022 and 22.04.2022 imposed a moratorium and appointed a Resolution Professional. The Appellants challenged the vires of Section 95 of the Code, which was under challenge in the Supreme Court.

## Facts

Tejinder Singh Saini and Amardeep Singh Dhanjal filed appeals against the State Bank of India after applications under Section 95(1) of the Insolvency & Bankruptcy Code, 2016 were admitted against them in their capacity as personal guarantors to M/s Modern India Con-Cast Limited. The State Bank of India initiated the Insolvency Resolution Process. The Impugned Orders imposed a moratorium and appointed a Resolution Professional. The appellants challenged the vires of Section 95 of the Code, which was under challenge in the Hon'ble Supreme Court in Writ Petition (Civil) No. 1281 of 2021. The Writ Petition (Civil) No. 1281 of 2021 was dismissed on 09.11.2023.

## Issues and analysis

### Issue 1: Whether the appeals against the Impugned Orders should be dismissed given that the Writ Petition …

**Ratio:** The dismissal of the Writ Petition challenging the vires of Section 95 of the Insolvency

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**Reasoning:** The court reasoned that since the challenge to the validity of Section 95 had been

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**Interpretation:** This interpretation clarifies that once a legal challenge to a statutory

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**Application:** In this specific case, the dismissal of the Writ Petition meant that the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Tejinder Singh…
- **Respondents:** Modern India Con…; State Bank of…

## Timeline

- **2022-02-11 — Impugned Ord…**: Impugned Order dated 11.02.2022 imposing moratorium and appointing Resolution…
- **2022-04-22 — Impugned Order Date…**: Impugned Order passed on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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