# 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-01638. 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-01638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-satyanarayana-malla-anr-cp-e4fad6cf

## Summary

### Background

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

## Facts

State Bank of India filed an application against Satyanarayana Malla & Varam Bio Energy Ltd under Section 95 of the IBC. The application seeks to initiate insolvency proceedings against the respondents. Upon filing the application, an interim moratorium commences, staying any legal actions or proceedings against the debtor. Shri Dantu Indu Sekhar is appointed as the IRP to file a report under Section 99 of the IBC within ten days of his appointment. The respondents are required to file a reply within two weeks, and the petitioners can file a rejoinder within two weeks thereafter. The case is adjourned to 08.09.2021.

## Issues and analysis

### Issue 1: Whether an interim moratorium should be imposed following the application under Section 95 of the …

**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 interim moratorium is a statutory consequence of filing an

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**Interpretation:** Section 96(1)(a) is interpreted to mean that the interim moratorium is

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**Application:** The court applied this ratio by ordering the commencement of the interim

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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 — Interim Moratorium…**: 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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