# In the matter of State Bank of India vs. Satish Dondiram Chavan

> NCLT judgment dated 13 Nov 2024. Citation: TCN-2024-NCLT-00258. The State Bank of India, as the Financial Creditor, filed a petition under Section 95(1) of…

- **Court:** NCLT
- **Order date:** 13 Nov 2024
- **Citation:** TCN-2024-NCLT-00258
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-satish-dondiram-chavan-9fc115c0

## Summary

### Background

The State Bank of India, as the Financial Creditor, filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate an insolvency resolution process against Satish Dondiram Chavan, the Personal Guarantor. The petition was filed on February 17, 2022, alleging a default date of May 31, 2019. The total debt claimed by the Financial Creditor amounted to INR 52,44,47,851.86 as of April 1, 2019, with the guarantee invoked on August 13, 2019. The Corporate Debtor, M/s. Pratibha Krushi Prakriya Limited, had been sanctioned credit facilities, against which the

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## Facts

The State Bank of India, as the Financial Creditor, filed a petition on February 17, 2022, under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against Satish Dondiram Chavan, the Personal Guarantor. The purpose of the petition was to initiate an insolvency resolution process. The date of default, as stated in Part-III of the petition, is May 31, 2019.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor against the Personal Guarantor is admissible…

**Ratio:** A petition under Section 95 of the IBC, 2016, is admissible against a personal guarantor…

**Reasoning:** The NCLT found that the Corporate Debtor had committed defaults in repayment of the loan…

**Interpretation:** The court interpreted Section 95 of the IBC, 2016, as allowing for the…

**Application:** Given the established defaults by the Corporate Debtor and the Personal…

## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Advocates:** Sagar Dh…; Sayli P…; +1 more

## Timeline

- **April 21, 2015 — Sanction…**: Credit facilities sanctioned to M/s.…
- **July 31, 2017 — Loan Agreement and Deed…**: Loan Agreement executed, and Personal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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