# In the matter of DBS Bank India Limited vs. Sapna Vicky Shah

> NCLT judgment dated 2024-10-22. Citation: TCN-2024-NCLT-00380. DBS Bank India Limited filed a petition under Section 95 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Oct 2024
- **Citation:** TCN-2024-NCLT-00380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dbs-bank-india-limited-vs-sapna-vicky-shah-ae626625

## Summary

### Background

DBS Bank India Limited filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy Rules, 2019, seeking to initiate insolvency resolution process against Mrs. Sapna Vicky Shah, the personal guarantor of the corporate debtor, SKS Textiles Private Limited. The corporate debtor had availed various loan facilities from the applicant, DBS Bank India Limited. The personal guarantors provided their personal guarantee for these facilities. The corporate debtor defaulted on repayments, leading to the applicant recalling the loan facilities and initiating recovery proceedings. The financial creditor dispatched a demand notice on January 5, 2022, demanding payment of ₹28,79,39,439.56. The personal guarantor

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## Facts

DBS Bank India Limited filed a petition against Mrs. Sapna Vicky Shah, the personal guarantor of SKS Textiles Private Limited, seeking to initiate insolvency resolution. SKS Textiles Private Limited had availed loan facilities from DBS Bank India Limited, with Mrs. Shah providing a personal guarantee. The corporate debtor defaulted, leading to the recall of loan facilities. The total debt in default amounted to INR 28,79,39,439.56 as of 31.10.2021. The guarantee was invoked on 02.12.2022. The corporate debtor's account was classified as NPA on 06.04.2021. The Deed of Guarantee was executed on 11.05.2015, and a Supplemental Deed of Guarantee was executed on 03.03.2016. The Corporate Debtor delivered undated repayment cheques for amounts of ₹7,40,00,000, *7,50,00,000,

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## Issues and analysis

### Issue 1: Whether the petition filed by DBS Bank India Limited is maintainable against Mrs. Sapna Vicky Shah, …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court found that the petitioner, DBS Bank India Limited, is the successor of DBS

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**Interpretation:** The court interpreted Section 95 of the IBC to allow a financial creditor to

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**Application:** The court applied the ratio to the facts, noting that DBS Bank India Limited

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** DBS Bank India…
- **Respondents:** SKS Textiles…; Sapna Vick…

## Timeline

- **2015-05-11 — Execution of Deed of…**: The Deed of Guarantee was…
- **2016-03-03 — Execution of Supplementa…**: The Supplemental Deed of Guarantee was…

## 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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