# In the matter of State Bank of India vs. Karan U Jethwani

> Read the full IBC case summary for In the matter of State Bank of India vs. Karan U Jethwani. NCLT judgment dated 2023-07-13. Citation: TCN-2023-NCLT-05326.

- **Court:** NCLT
- **Order date:** 13 Jul 2023
- **Citation:** TCN-2023-NCLT-05326
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-karan-u-jethwani-a949d5b0

## Summary

### Background

The application was filed by the Resolution Professional (RP) because the personal guarantor failed to submit a repayment plan despite being given an opportunity to do so. The financial creditor had also served notice to the personal guarantor before the application was filed.

## Facts

The Resolution Professional (RP) filed an application, IA (IBC) 959/2023, stating that the personal guarantor had not submitted a repayment plan. The RP's report indicated that despite being given an opportunity, the personal guarantor failed to provide the required plan. This failure to submit a repayment plan was a critical factor in the proceedings.

The record further showed that the financial creditor had served notice to the personal guarantor before the present application was filed. Given these circumstances, the National Company Law Tribunal (NCLT) admitted the application under Section 100 of the Insolvency and Bankruptcy Code, 2016. Following the admission, the NCLT ordered a moratorium in terms of Section 101 of the Code.

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## Issues and analysis

### Issue 1: Whether the application for insolvency resolution of the personal guarantor should be admitted when…

**Ratio:** An application for insolvency resolution of a personal guarantor can be admitted under…

**Reasoning:** The personal guarantor was given an opportunity to submit a repayment plan but failed to…

**Interpretation:** The court interpreted **Section 100** of the IBC to allow for the admission of…

**Application:** Given the personal guarantor's failure to submit a repayment plan, the NCLT…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Advocates:** For the Applicant:…

## Timeline

- **July 13, 2023 — Hearing…**: Attendance cum order sheet of…
- **RP files appl…**: The Resolution Professional (RP) filed IA (IBC) 959/2023, stating that no repayment plan…

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