# In the matter of Central Bank of India Vs. Sanjay Kumar Sureka, CP (IB)/400(KB)/2021

> NCLT judgment dated 2022-07-11. Citation: TCN-2022-NCLT-01772. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Jul 2022
- **Citation:** TCN-2022-NCLT-01772
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-sanjay-kumar-sureka-cp-c0ccc454

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The applicant, Central Bank of India, sought to initiate the Insolvency Resolution Process against the respondent, Mr. Sanjay Kumar Sureka, who is a personal guarantor for Concast Steel & Power Ltd. (CSPL). CSPL had availed credit facilities from the applicant, and Mr. Sureka had provided personal guarantees to secure the repayment of these facilities. Due to the failure of CSPL to comply with the terms and conditions of the loan accounts, the accounts were classified as NPA on

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## Facts

Central Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Sanjay Kumar Sureka, the personal guarantor for Concast Steel & Power Ltd. (CSPL). CSPL had availed credit facilities from Central Bank, and Mr. Sureka had provided personal guarantees to secure the repayment. The loan accounts were classified as NPA on 31.03.2015 due to CSPL's failure to comply with loan terms. CIRP had already been initiated against CSPL and admitted by NCLT Kolkata. The applicant issued a demand notice on 18.03.2021 demanding Rs. 280,93,10,825.35/-. Mr. Sanjay Kumar Sureka had executed personal guarantees lastly on 08.06.2017 in favour of the Applicant to secure the

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## Issues and analysis

### Issue 1: Whether the application for initiating the Insolvency Resolution Process against the personal …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 allows a creditor to apply for

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**Reasoning:** The court considered the application filed by Central Bank of India, the creditor,

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover their dues from

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**Application:** The court applied Section 95(1) to the facts of the case, finding that Central

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Central Bank of…
- **Respondents:** Concast Steel &…; Sanjay Kumar…
- **Advocates:** Usha D…; Priyanka…; +5 more

## Timeline

- **2015-03-31 — NPA Classif…**: Loan accounts of Concast Steel & Power Ltd.…
- **2017-06-08 — Execution of Personal…**: Mr. Sanjay Kumar Sureka executed personal…

## 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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