# In the matter of L. Madhusudhan Rao Vs. State Bank of India, IA (IBC) No. 347/2021 in CP (IB) No. 03/95/HDB/2021

> NCLT judgment dated 2021-07-23. Citation: TCN-2021-NCLT-01646. The document pertains to IA (IBC) No. 347/2021 in CP (IB) No. 03/95/HDB/2021 before the…

- **Court:** NCLT
- **Order date:** 23 Jul 2021
- **Citation:** TCN-2021-NCLT-01646
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/l-madhusudhan-rao-vs-state-bank-of-india-ia-125db255

## Summary

### Background

The document pertains to IA (IBC) No. 347/2021 in CP (IB) No. 03/95/HDB/2021 before the National Company Law Tribunal, Hyderabad. The case involves State Bank of India as the petitioner and L. Madhusudhan Rao as the respondent. The IA was filed for urgent listing and was allowed, leading to the matter being listed.

## Facts

State Bank of India filed IA (IBC) No. 347/2021 in CP (IB) No. 03/95/HDB/2021 against L. Madhusudhan Rao. The application was for urgent listing, which the court allowed. The court then declared an interim moratorium under Section 96(1)(a) of the I&B Code, 2016. Shri Anil Kohli was appointed as the Interim Resolution Professional (IRP) and is required to submit a report within ten days as per Section 99 of the I&B Code, 2016. The respondents are required to file a reply within two weeks, and the petitioners can file a rejoinder within two weeks after that. The case was adjourned to 2021-09-03. The interim moratorium is a key fact as it directly impacts the legal actions that can be taken against the debtor.

## Issues and analysis

### Issue 1: Whether an interim moratorium should be imposed …

**Ratio:** Section 96(1)(a) of the I&B Code, 2016 allows for the commencement of an interim

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**Reasoning:** The court reasoned that since an application was filed, the interim moratorium should

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**Interpretation:** Section 96(1)(a) is interpreted to mean that upon filing an application under

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**Application:** The court applied this ratio by declaring the commencement of the interim

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** L. Madhusud…

## Timeline

- **2021-07-23 — Hearing…**: Hearing held on…
- **2021-09-03 — Adjournmen…**: The matter stands…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 96(1) — Interim- moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-96)

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