# In the matter of State Bank of India Vs. Sahadulla M I, Zaheer E N, E Iqbal & E M Najeeb, IBA/42/KOB/2020, IBA/43/KOB/2020, IBA/44/KOB/2020, IBA/45/KOB/2020, IA(IBC)49 (KOB/2021) in IBA/42/KOB/2020

> NCLT judgment dated 2021-10-06. Citation: TCN-2021-NCLT-00829. The document pertains to a set of applications (IBA/42/KOB/2020, IBA/43/KOB/2020,…

- **Court:** NCLT
- **Order date:** 6 Oct 2021
- **Citation:** TCN-2021-NCLT-00829
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-sahadulla-m-i-zaheer-e-n-e-iqbal-e-m-najeeb-iba42kob2020-afd8a01d

## Summary

### Background

The document pertains to a set of applications (IBA/42/KOB/2020, IBA/43/KOB/2020, IBA/44/KOB/2020, and IBA/45/KOB/2020) filed by State Bank of India under Section 95 of the Insolvency and Bankruptcy Code, 2016, against personal guarantors of Green Gateway Leisure Private Limited, seeking to initiate the Insolvency Resolution Process. The Corporate Debtor, Green Gateway Leisure Private Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on 15.10.2020 following an application under Section 7 of the I&B Code by Union Bank of India. The corporate debtor was developing a hotel at Bekal, Kasaragod, on land leased from Bekal Resorts Development Corporation Limited (BRDC). The applicant bank had sanctioned credit facilities to the corporate debtor,

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## Facts

State Bank of India (SBI) filed applications under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Sahadulla M.I, Zaheer E.N, E.Iqbal, and E.M Najeeb, who are personal guarantors to the Corporate Debtor, Green Gateway Leisure Private Limited. Green Gateway Leisure Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 2020-10-15, based on an application filed by Union Bank of India under Section 7 of the IBC. The Corporate Debtor was developing a hotel at Bekal, Kasaragod, on land leased from Bekal Resorts Development Corporation Limited (BRDC). SBI had sanctioned credit facilities to the Corporate Debtor, including a term loan. The personal guarantors executed deeds of guarantee in favor of SBI. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the applications filed by State Bank of India under Section 95 of the Insolvency and …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate

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**Reasoning:** The Tribunal considered the provisions of Section 95 of the I&B Code, 2016, and the

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**Interpretation:** Section 95 of the IBC is interpreted to provide a mechanism for creditors to

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**Application:** The Tribunal applied Section 95 to the facts of the case, finding that the

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## Parties

- **Judges:** Ashok Kumar…; RAJESH S…
- **Appellants:** State Bank of…
- **Respondents:** Green Gateway…; Sahadull…

## Timeline

- **2020-10-15 — Admission in…**: Green Gateway Leisure Private Limited was admitted into Corporate Insolvency Resolution…
- **2017-06-28 — NPA Decla…**: Accounts of the Corporate…

## 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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