# In the matter of Aneesa Zainab (Personal Guarantor) of Emerald Mineral Exim Private Limited CP (IB) No.22/CB/2021

> NCLT judgment dated 2021-09-21. Citation: TCN-2021-NCLT-01063. The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Sept 2021
- **Citation:** TCN-2021-NCLT-01063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aneesa-zainab-personal-guarantor-of-emerald-mineral-exim-private-limited-cp-ib-n-d3a7cf83

## Summary

### Background

The case pertains to an application filed under Section 95(1) 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 Debtor) Rules, 2019. The application was filed by State Bank of India against Aneesa Zainab, a personal guarantor to Emerald Mineral Exim Private Limited (EME), seeking initiation of insolvency resolution process against the personal guarantor.

## Facts

State Bank of India (SBI) filed an application against Aneesa Zainab, a personal guarantor to Emerald Mineral Exim Private Limited (EME), under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016. EME, the principal borrower, had requested SBI for credit limits, which SBI sanctioned an overall limit of ₹11 crore on 2008-02-19. Subsequently, the credit limit was enhanced multiple times, reaching ₹30.74 crore by 2010-12-28. Aneesa Zainab executed personal guarantees on 2011-01-18 and 2013-07-24 in favor of SBI to secure the repayment of the facility agreements. EME and the guarantor failed to make payments as per the facility agreements, leading SBI to classify EME's account as a non-performing asset. SBI had also filed an application (OA No.720/2014) under

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India under Section 95(1) of the Insolvency and …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 allows a creditor to file an

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**Reasoning:** The court considered the factual matrix of the case, including the financial creditor's

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover their dues from

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**Application:** The court found that the applicant had presented sufficient evidence to

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## Parties

- **Judges:** Rajasekha…; Satya Ranjan…
- **Appellants:** State Bank of…
- **Respondents:** Emerald Mineral…; Aneesa Z…

## Timeline

- **2008-02-19 — Sanction of Cre…**: Financial Creditor sanctioned an overall limit of ₹11 crore to Emerald Mineral Exim…
- **2010-12-28 — Enhancement…**: The loan was enhanced…

## 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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