# In the matter of State Bank of India vs. Vaddineni Venkatappa Naidu

> NCLT judgment dated 2025-09-01. Citation: TCN-2025-NCLT-01406. State Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Sept 2025
- **Citation:** TCN-2025-NCLT-01406
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/state-bank-of-india-vs-vaddineni-venkatappa-naidu-938c6a5e

## Summary

### Background

State Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Vaddineni Venkatappa Naidu, the personal guarantor of Victory Electricals Limited (VEL), for a default amount of Rs. 365,36,36,599.58. The date of default was specified as 09.03.2012 for the cash credit account and 31.05.2012 for the term loan. The petitioner relied on a deed of personal guarantee executed by the guarantor in favor of the financial creditor.

## Facts

State Bank of India filed a petition against Vaddineni Venkatappa Naidu, the personal guarantor of Victory Electricals Limited (VEL), under Section 95 of the IBC.

The default amount claimed was Rs. 365,36,36,599.58, with the date of default being 09.03.2012 for cash credit and 31.05.2012 for term loan.

The petitioner relied on a deed of personal guarantee executed by Vaddineni Venkatappa Naidu in favor of State Bank of India.

The respondent, Vaddineni Venkatappa Naidu, challenged the maintainability of the petition, alleging malicious intent and raising concerns about the handling of the corporate debtor's assets.

The respondent filed an application under Section 65(1) of the IBC, claiming that the petition was malicious and fraudulent.

…

## Issues and analysis

### Issue 1: Whether the petition under Section 95 of the IBC is maintainable against the personal guarantor, …

**Ratio:** The Adjudicating Authority held that the petition is maintainable, as the petitioner has

…

**Reasoning:** The Adjudicating Authority relied on the audited balance sheet of the Corporate Debtor,

…

**Interpretation:** The Adjudicating Authority interpreted Section 95 of the IBC to mean that a

…

**Application:** The Adjudicating Authority applied the legal principles to the facts of the

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** State Bank of…
- **Respondents:** Victory Electrical…; Victory Transforme…; +1 more
- **Other parties:** Kasi Sri…
- **Advocates:** Pranava C…; K. Koteswa…; +2 more

## Timeline

- **09.03.2012 — Date of D…**: Date of Default for…
- **31.05.2012 — Date of D…**: Date of Default for…

## 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)

---

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-chennai/state-bank-of-india-vs-vaddineni-venkatappa-naidu-938c6a5e