# In the matter of State Bank of India Vs. Pritesh Jayantilal Karia, CP (IB)/167(AHM)/2021

> NCLT judgment dated 2021-10-05. Citation: TCN-2021-NCLT-00842. The Financial Creditor filed an application under Section 95 of the IBC seeking initiation of…

- **Court:** NCLT
- **Order date:** 5 Oct 2021
- **Citation:** TCN-2021-NCLT-00842
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-pritesh-jayantilal-karia-cp-a1264ae4

## Summary

### Background

The Financial Creditor filed an application under Section 95 of the IBC seeking initiation of CIRP against the personal guarantor of the Corporate Debtor. The Respondent argued that the personal guarantee was barred by limitation and not filed through RP, warranting dismissal. The Applicant countered with an NCLAT order stating that all pleadings could be addressed at the time of admission into CIRP.

## Facts

The State Bank of India, as the Financial Creditor, filed an application under Section 95 of the IBC to initiate CIRP against Pritesh Jayantilal Karia, the personal guarantor of the Corporate Debtor. The Respondent argued that the application was barred by limitation and not filed through the resolution professional (RP). The Applicant presented an order from the NCLAT, Ravi Ajit Kulkarni Vs. State Bank of India dated 2021-08-12, stating that all such pleadings could be taken up at the time of admission of the Corporate Debtor into CIRP. The court then addressed the commencement of the interim moratorium and the process for nominating the IRP.

## Issues and analysis

### Issue 1: Whether the interim moratorium under Section 96 of the IBC starts from the date of filing the …

**Ratio:** Section 96 of the IBC, 2016 stipulates the

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**Reasoning:** The court held that the interim moratorium begins from the date of filing the

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**Interpretation:** Section 96 is interpreted to mean that the moratorium is effective from the

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**Application:** The court applied this interpretation to the present case, stating that the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** State Bank of…
- **Respondents:** Pritesh Jayantilal…

## Timeline

- **2021-08-12 — NCLAT Or…**: NCLAT order in the case of Ravi Ajit Kulkarni Vs. State Bank of India, stating that all…
- **2021-10-05 — Order Del…**: Order delivered by the NCLT, Ahmedabad, regarding the initiation of CIRP against 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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