# In the matter of State Bank of India Vs. Bhagavatula Venkat Ramana & VMC Systems Ltd., CP (IB) No. 396/95/HDB/2020

> NCLT judgment dated 2021-07-28. Citation: TCN-2021-NCLT-01582. The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Jul 2021
- **Citation:** TCN-2021-NCLT-01582
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-bhagavatula-venkat-ramana-vmc-systems-ltd-cp-ddb2bf99

## Summary

### Background

The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The application seeks the commencement of an interim moratorium. The learned counsel for the Financial Creditor (FC) and the Corporate Debtor appeared before the court.

## Facts

The State Bank of India filed an application against VMC Systems Ltd under Section 95 of the IBC. The application sought the commencement of an interim moratorium. The court noted the appearance of the learned counsel for both the Financial Creditor and the Corporate Debtor. The court then proceeded to consider the application for an interim moratorium, referencing Section 96 of the IBC. Shri Raghu Babu Gunturu was appointed as the Interim Resolution Professional (IRP).

## Issues and analysis

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

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

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**Reasoning:** The court considered the application and the relevant provisions of the I&B Code,

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**Interpretation:** Section 96(1)(a) mandates the commencement of an interim moratorium from the

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**Application:** The court applied Section 96(1)(a) to the present case, ordering that the

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** VMC Syste…; Bhagavatula…

## Timeline

- **2021-07-28 — Hearing…**: Hearing held on…
- **N/A — Interim Moratorium…**: Interim moratorium commences from the…

## 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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