# In the matter of State Bank of India Vs. Asha Mittal, IB-353/(ND)/2021

> NCLT judgment dated 2021-08-12. Citation: TCN-2021-NCLT-01353. The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Aug 2021
- **Citation:** TCN-2021-NCLT-01353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-asha-mittal-ib-353-b48af366

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mrs. Asha Mittal, the personal guarantor of M/s Hitech Grain Processing Pvt. Ltd., the corporate debtor. The application seeks to initiate an insolvency resolution process against Mrs. Mittal due to an outstanding debt of Rs. 209,61,09,614 as of 31.08.2020, owed by the corporate debtor. The corporate debtor was previously admitted into the Corporate Insolvency Resolution Process (CIRP) by an NCLT order dated 31.10.2019. A Deed of Guarantee dated 06.06.2017 was provided by Mrs. Mittal to the State Bank of India, guaranteeing a principal sum not exceeding Rs. 305.00 Crores.

## Facts

The State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mrs. Asha Mittal, who is the personal guarantor of M/s Hitech Grain Processing Pvt. Ltd. (the corporate debtor). The corporate debtor was admitted into Corporate Insolvency Resolution Process (CIRP) by an NCLT order dated 31.10.2019. The application was filed due to an outstanding debt of Rs. 209,61,09,614 as of 31.08.2020, owed by the corporate debtor. Mrs. Mittal provided a personal guarantee to SBI via a Deed of Guarantee dated 06.06.2017, guaranteeing a principal sum up to Rs. 305.00 Crores. SBI issued a Demand Notice in Form B to Mrs. Mittal on 31.08.2020, which was delivered on 05.04.2021. The applicant submitted a Record of Default by

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## Issues and analysis

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

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Tribunal considered the documents and submissions made by the applicant, including

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**Interpretation:** Section 95 provides a mechanism for financial creditors to recover debts from

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**Application:** The Tribunal found that the applicant had met the requirements of Section 95

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## Parties

- **Judges:** SH. P.S.N.…; Sh. Hemant Kumar…
- **Appellants:** State Bank of…
- **Respondents:** M/s Hitech Grain…; Asha Mi…

## Timeline

- **2019-10-31 — Corporate Debtor…**: M/s Hitech Grain Processing Pvt. Ltd. was admitted under Corporate Insolvency Resolution…
- **2017-06-06 — Deed of Gua…**: A Personal Guarantee by Mrs. Asha Mittal, of the Corporate Debtor Company M/s Hitech…

## Legal provisions

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

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