# In the matter of State Bank of India vs. Yarlagadda Madhu Mohan

> Read the full IBC case summary for In the matter of State Bank of India vs. Yarlagadda Madhu Mohan. NCLT judgment dated 2025-11-03. Citation:…

- **Court:** NCLT
- **Order date:** 3 Nov 2025
- **Citation:** TCN-2025-NCLT-01691
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-yarlagadda-madhu-mohan-3115dfe0

## Summary

### Background

The Financial Creditor (State Bank of India) filed an application under Sections 121 and 123 of the IBC, 2016, read with Rule 7 of the IBBI (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantor to Corporate Debtors) Rules, 2019, to initiate bankruptcy proceedings against the Personal Guarantor (Shri Yarlagadda Madhu Mohan) due to the Corporate Debtor's (M/s. YKM Entertainment & Hotels Private Limited) default on financial assistance and the failure of the Personal Guarantor to submit a repayment plan.

## Facts

The Corporate Debtor, M/s. YKM Entertainment & Hotels Private Limited, availed financial assistance totaling Rs 263,48,37,487/- from the Financial Creditor, State Bank of India, and its associate banks. To secure this financial assistance, the Personal Guarantor, Shri Yarlagadda Madhu Mohan, executed a Guarantee Agreement. The total outstanding dues, including interest and other bank charges, amounted to Rs. 372,63,03,510/- as of February 1, 2025.

…

## Issues and analysis

### Issue 1: Whether the proceedings initiated under the Insolvency and Bankruptcy Code, 2016, are maintainable…

**Ratio:** The Insolvency and Bankruptcy Code, 2016, applies to personal guarantors to corporate…

**Reasoning:** The Tribunal found that Section 2(e) of the Code explicitly applies to "personal…

**Interpretation:** The court interpreted **Section 2(e)** and **Section 3(23)** of the IBC, 2016,…

**Application:** The Personal Guarantor's contention that the proceedings were ultra vires due…

## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Advocates:** For the Petitioner…; Ld. Cou…; +1 more

## Timeline

- **November 29, 2016 — Loan Accou…**: The Corporate Debtor's loan account was…
- **August 9, 2018 — SARFAESI Act…**: Financial Creditor issued notice to the Corporate Debtor and Personal Guarantor under…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/state-bank-of-india-vs-yarlagadda-madhu-mohan-3115dfe0