# In the matter of State Bank of India Vs. Mahendra Kumar Rajpal, CP (IB)/25(MP)/2021

> NCLT judgment dated 2021-08-25. Citation: TCN-2021-NCLT-01284. The case involves an application under Section 95 of the Insolvency and Bankruptcy Code (IBC).…

- **Court:** NCLT
- **Order date:** 25 Aug 2021
- **Citation:** TCN-2021-NCLT-01284
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-mahendra-kumar-rajpal-cp-8ca6ade1

## Summary

### Background

The case involves an application under Section 95 of the Insolvency and Bankruptcy Code (IBC). The personal guarantor seeks a stay on the interim moratorium, relying on a judgment by the NCLAT. The applicant's counsel suggests the presence of the Resolution Professional (RP).

## Facts

State Bank of India filed an application against Mahendra Kumar Rajpal, the Corporate Guarantor, under Section 95 of the IBC. The Personal Guarantor's counsel seeks a stay on the interim moratorium, citing an NCLAT judgment in Company Appeal(AT) (Insolvency) No. 464 of 2021 dated 12.07.2021, which stayed proceedings for NCLT. The court notes that the interim moratorium commences upon filing an application under Section 95, as per the Code. The RP, Ms. Teena Saraswat, is present in person as suggested by the Applicant. The matter is listed for further consideration on 04.10.2021. The relevance of the NCLAT judgment is that it stayed proceedings, which the personal guarantor argues should also apply to the interim moratorium in this case.

## Issues and analysis

### Issue 1: Whether the interim moratorium, triggered by an application under Section 95 of the IBC, can be …

**Ratio:** The interim moratorium commences as per the provisions of the Code upon filing of an

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**Reasoning:** The court reasons that the NCLAT's stay of proceedings does not automatically prevent the

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**Interpretation:** The interpretation is that the commencement of the interim moratorium is a

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**Application:** The ratio and reasoning are applied to the facts by stating that the NCLAT

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## Parties

- **Judges:** DEEPTI M…; Mr.Virendra Kumar…
- **Appellants:** State Bank of…
- **Respondents:** Mahendra Kumar…

## Timeline

- **2021-07-12 — NCLAT Or…**: Hon'ble NCLAT stayed the proceedings for NCLT in Company Appeal(AT) (Insolvency) No. 464…
- **2021-08-25 — Order Del…**: Order delivered by 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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