# In the matter of State Bank of India Vs. Ankit Patni, CP (IB) No. 136 (KB)/2021

> NCLT judgment dated 2021-09-21. Citation: TCN-2021-NCLT-01053. The case involves 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-01053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-ankit-patni-cp-804db49f

## Summary

### Background

The case involves 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 Mr. Ankit Patni, a personal guarantor to Rohit Ferro-Tech Limited (RFTL). RFTL had availed loan facilities from the applicant amounting to Rs. 1269,59,00,000. Mr. Patni executed a personal guarantee on 17/09/2014 in favour of SBICAP TRUSTEE COMPANY LIMITED, acting as a Security Trustee, to secure the repayment of the facility agreements.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Insolvency Resolution Process (IRP) against Mr. Ankit Patni, a personal guarantor to Rohit Ferro-Tech Limited (RFTL). RFTL, the corporate debtor, had availed loan facilities amounting to Rs. 1269,59,00,000 from SBI. Facility Agreements were in place, obligating RFTL to repay the principal loan amount with interest. Deeds of Guarantee and a Supplemental Deed of Guarantee were executed between 2011 and 2014. Mr. Ankit Patni executed a personal guarantee on 17/09/2014 in favor of SBICAP TRUSTEE COMPANY LIMITED, acting as a Security Trustee, to secure the repayment of the facility agreements. RFTL was admitted under Corporate Insolvency

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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:** The ratio is based on the provisions of Section 95(1) of the IBC, 2016, which allows

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**Reasoning:** The court reasoned that the applicant had presented sufficient evidence to demonstrate

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**Interpretation:** Section 95(1) of the IBC, 2016, is interpreted to mean that a creditor can

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**Application:** The court applied the ratio to the facts of the case, noting that State Bank of

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** State Bank of…
- **Respondents:** Rohit Ferro Tech…; Ankit P…

## Timeline

- **2021-08-13 — Court Con…**: The Court convened via…
- **2021-09-21 — Order Pron…**: Order Pronounced on the…

## 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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