# In the matter of State Bank of India vs. S. Ashok

> NCLT judgment dated 2025-04-08. Citation: TCN-2025-NCLT-01008. The case pertains to an application filed by State Bank of India (SBI) under Section 95(1) of…

- **Court:** NCLT
- **Order date:** 8 Apr 2025
- **Citation:** TCN-2025-NCLT-01008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/state-bank-of-india-vs-s-ashok-0aca7520

## Summary

### Background

The case pertains to an application filed by State Bank of India (SBI) under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, for initiating insolvency resolution process against Mr. S. Ashok, the personal guarantor to MPL Cars Private Limited.

## Facts

SBI advanced cash credit loan facilities to MPL Cars Private Limited via e-DFS (Electronic Dealer Finance Scheme).

The Corporate Debtor, MPL Cars Private Limited, was admitted into CIRP on 13.08.2019 and subsequently into Dissolution on 12.07.2024.

Mr. S. Ashok provided a personal guarantee for the credit facilities availed by MPL Cars Private Limited.

The total debt claimed by SBI is Rs. 48,97,59,953/- as on 05.02.2024.

SBI issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, to the Corporate Debtor and its guarantors on 06.09.2016.

SBI initiated SARFAESI proceedings against the mortgaged security interest belonging to Mr. S. Ashok and recovered Rs.3,57,00,000/- through auction.

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## Issues and analysis

### Issue 1: Whether the application is within the …

**Ratio:** Any application under IBC has to be filed within 3 years from the date of accrual of

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**Reasoning:** The date of default is submitted as 06.03.2019, and the application is filed on

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**Interpretation:** The matter falls well within

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**Application:** The application is within

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** State Bank of…; V.Sadha…
- **Respondents:** MPL Cars Private…; S. As…
- **Other parties:** N.Veerapa…; Mr.S A…
- **Advocates:** M.L. Ga…; Mr.PJ Ris…; +1 more

## Timeline

- **2012-01-25 — e-DFS San…**: SBI sanctioned e-DFS facility of Rs.35…
- **2019-08-13 — CIRP Admi…**: MPL Cars Private…

## 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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