# In the matter of State Bank of India Vs. Rakesh Rajpal, CP (IB)/41(MP)/2021

> NCLT judgment dated 2021-09-03. Citation: TCN-2021-NCLT-01190. The application is filed by the Financial Creditor through RP for initiation of CIRP against…

- **Court:** NCLT
- **Order date:** 3 Sept 2021
- **Citation:** TCN-2021-NCLT-01190
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-rakesh-rajpal-cp-601d68eb

## Summary

### Background

The application is filed by the Financial Creditor through RP for initiation of CIRP against personal guarantors. The respondent's counsel submitted that CIRP in respect of the corporate debtor, in relation to whom guarantees have been given, is still under process and a suitable resolution plan is likely to be approved. The applicant's counsel seeks an order under Section 96 read with Section 99, with direction to the RP.

## Facts

The State Bank of India, acting as the applicant, filed an application for the initiation of Corporate Insolvency Resolution Process (CIRP) against the personal guarantor, Rakesh Rajpal, the respondent. The application was filed through a Resolution Professional (RP). The respondent's counsel submitted that the CIRP concerning the corporate debtor, for whom the guarantees were provided, is currently underway, and a resolution plan is anticipated to be approved. The applicant's counsel requested the court to pass an order under Section 96 read with Section 99 of the Insolvency and Bankruptcy Code (IBC), directing the RP accordingly. The court directed the commencement of an interim moratorium under Section 96 from the date of the application. Mr. Sajjan Kumar Dokania,

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## Issues and analysis

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

**Ratio:** Section 96 of the IBC provides for the commencement of an interim moratorium upon the

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**Reasoning:** The court considered the provisions of Section 96 and the application filed by the

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**Interpretation:** Section 96 mandates the commencement of an interim moratorium to protect the

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**Application:** The court applied Section 96 to the facts of the case and directed the

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## Parties

- **Judges:** DEEPTI M…; Virendra Kumar…
- **Appellants:** State Bank of…
- **Respondents:** Rakesh R…

## Timeline

- **2021-09-03 — Order Del…**: Order was delivered on…
- **2021-11-25 — Matter L…**: The matter is listed for further…

## 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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