# In the matter of State Bank of India Vs. Uppalapati Venkat Rama Rao & VMC Systems Ltd., CP (IB) No. 397/95/HDB/2020

> NCLT judgment dated 2021-07-28. Citation: TCN-2021-NCLT-01583. The case involves a company petition/application filed under the IBC (Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Jul 2021
- **Citation:** TCN-2021-NCLT-01583
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-uppalapati-venkat-rama-rao-vmc-systems-ltd-cp-ea4310d1

## Summary

### Background

The case involves a company petition/application filed under the IBC (Insolvency and Bankruptcy Code). The interim moratorium commences from the date of filing of the application under section 96(1)(a) of the I&B Code, 2016. Legal actions are governed under section 96(1)(b) of the I&B Code, 2016.

## Facts

The State Bank of India filed a petition against VMC Systems Ltd. Uppalapati Venkata Rama Rao & VMC Systems Ltd are the respondents. The application was filed under Section 95 of the IBC. The court has initiated an interim moratorium as per Section 96(1)(a) of the I&B Code, 2016. Shri Raghu Babu Gunturu is appointed as the IRP. The respondents are required to file a reply within two weeks, and the petitioners may file a rejoinder within two weeks thereafter. The matter is adjourned to 01.09.2021.

## Issues and analysis

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

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

…

**Reasoning:** The court noted that the interim moratorium commences from the date of filing the

…

**Interpretation:** Section 96 of the I&B Code provides for an interim moratorium to protect

…

**Application:** The court applied Section 96(1)(a) by stating that the interim moratorium

…

## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** VMC Syste…; Uppalapati…

## Timeline

- **2021-07-28 — Hearing…**: Hearing held on 28.07.2021 at 10:30 AM. Interim…
- **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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