# In the matter of Md. Javed Sultan (Personal Guarantor) of Emerald Mineral Exim Private Limited CP (IB) No. 25/CB/2021

> NCLT judgment dated 2021-09-21. Citation: TCN-2021-NCLT-01062. The case pertains to an application filed by State Bank of India under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 21 Sept 2021
- **Citation:** TCN-2021-NCLT-01062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/md-javed-sultan-personal-guarantor-of-emerald-mineral-exim-private-limited-cp-ib-cac94bbd

## Summary

### Background

The case pertains to an application filed by State Bank of India 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, to initiate the Insolvency Resolution Process against the personal guarantor, Md. Javed Sultan, who is a director of Emerald Mineral Exim Private Limited (EME). EME had requested credit limits from the applicant, which were sanctioned and enhanced over time. The applicant classified EME's account as a non-performing asset after EME and the guarantor failed to make payments as per the facility agreements.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Md. Javed Sultan, a personal guarantor to Emerald Mineral Exim Private Limited (EME). EME, the principal borrower, had requested and received credit facilities from SBI, initially an overall limit of ₹11 crore sanctioned on 2008-02-19, which was later enhanced to ₹30.74 crore on 2010-12-28. Md. Javed Sultan executed personal guarantees on 2011-01-18 and 2013-07-24 to secure the repayment of the facility agreements. EME defaulted on payments, leading SBI to classify the account as a non-performing asset. SBI had also filed an application (OA No.720/2014) under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993,

…

## Issues and analysis

### Issue 1: Whether the application filed by the 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 apply for

…

**Reasoning:** The court considered the factual matrix of the case, including the credit facilities

…

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

…

**Application:** The court applied Section 95(1) to the facts of the case, finding that the

…

## Parties

- **Judges:** Rajasekha…; Satya Ranjan…
- **Appellants:** State Bank of…
- **Respondents:** Emerald Mineral…; Md. Javed…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/md-javed-sultan-personal-guarantor-of-emerald-mineral-exim-private-limited-cp-ib-cac94bbd