# In the matter of State Bank of India Vs. Prashant Mupparapu & Varam Bio Energy Pvt Ltd,  CP No. (IB)/231/2021

> NCLT judgment dated 2021-09-01. Citation: TCN-2021-NCLT-01235. The document pertains to a Company Petition filed under the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 1 Sept 2021
- **Citation:** TCN-2021-NCLT-01235
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-prashant-mupparapu-varam-bio-energy-pvt-ltd-cp-no-6590a364

## Summary

### Background

The document pertains to a Company Petition filed under the Insolvency and Bankruptcy Code (IBC) before the National Company Law Tribunal (NCLT), Hyderabad. The petition, numbered IB/231/2021, involves Varam Bio Energy Pvt Ltd as the corporate debtor and State Bank of India as the petitioner. The matter concerns Section 95 of the IBC. The hearing was held on September 1, 2021.

## Facts

The State Bank of India filed a petition against Varam Bio Energy Pvt Ltd under Section 95 of the IBC. The NCLT, Hyderabad, convened a hearing on September 1, 2021. The petition triggered the commencement of an interim moratorium as per Section 96(1)(a) of the IBC. This moratorium stays any existing legal actions or proceedings against Varam Bio Energy Pvt Ltd and prevents creditors from initiating new ones. Shri Dantu Indu Sekhar was appointed as the Interim Resolution Professional (IRP) with a requirement to submit a report under Section 99 of the IBC within 10 days of appointment. The counsel for the petitioner, State Bank of India, is required to inform the IRP of their appointment and serve the application to them. The case was adjourned to October 21, 2021.

## Issues and analysis

### Issue 1: Whether an interim moratorium should be imposed under Section 96 of the Insolvency and Bankruptcy …

**Ratio:** Section 96(1)(a) of the IBC stipulates that an interim moratorium commences from the date

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**Reasoning:** The court reasoned that upon filing a petition under Section 94 or 95 of the IBC, the

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**Interpretation:** Section 96(1)(a) is interpreted to mean that the interim moratorium is a

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**Application:** The court applied this ratio by declaring that the interim moratorium commenced

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** Varam Bio Energy…; Prashant Mu…

## Timeline

- **2021-09-01 — Hearing…**: Hearing held before the…
- **2021-10-21 — Adjournmen…**: Matter stands adjourned…

## 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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