# In the matter of State Bank of India Vs. Satyanarayana Malla & Anr. CP (IB) No. 96/95/HDB/2021

> NCLT judgment dated 2021-07-23. Citation: TCN-2021-NCLT-01629. The case involves an application under Section 95 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 23 Jul 2021
- **Citation:** TCN-2021-NCLT-01629
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-satyanarayana-malla-anr-cp-6efedbef

## Summary

### Background

The case involves an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner is State Bank of India, and the respondents are Satyanarayana Malla & Varam Bio Energy Ltd. The application seeks to initiate an interim moratorium.

## Facts

State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016 against Satyanarayana Malla & Varam Bio Energy Ltd. The application was filed under Section 95 of the IBC. The court acknowledged the appearance of counsels for both the petitioner and the respondents. Upon filing the application, an interim moratorium commences as per Section 96(1)(a) of the IBC. Legal actions are governed by Section 96(1)(b) of the IBC. Shri Dantu Indu Sekhar was appointed as the Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether an interim moratorium should be imposed following the filing of an application under …

**Ratio:** Section 96(1)(a) of the I&B Code, 2016 stipulates that an interim moratorium

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**Reasoning:** The court reasoned that the statutory provision mandates the commencement of an interim

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**Interpretation:** Section 96 of the IBC is interpreted to provide immediate relief to the debtor

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**Application:** The court applied the ratio of Section 96(1)(a) and (b) to the facts of the

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## Parties

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

## Timeline

- **2021-07-23 — Hearing…**: Hearing held on…
- **N/A — Filing of App…**: Interim moratorium commences from the date of filing of the application under section…

## 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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