# In the matter of DBS Bank India Limited vs. Sukanraj Babutmal Shah

> NCLT judgment dated 2024-10-22. Citation: TCN-2024-NCLT-00375. The case pertains to an application filed by DBS Bank India Limited under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 22 Oct 2024
- **Citation:** TCN-2024-NCLT-00375
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dbs-bank-india-limited-vs-sukanraj-babutmal-shah-d3cb8cd4

## Summary

### Background

The case pertains to an application filed by DBS Bank India Limited 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 Debtors) Rules, 2019, to initiate insolvency resolution process against Mr. Sukanraj Babutmal Shah, the personal guarantor of the corporate debtor, SKS Textiles Private Limited. The financial creditor claims a default of INR 28,79,39,439.56 as of 31.10.2021, with further interest. The corporate debtor had availed various loan facilities from the applicant, and the personal guarantor had provided a guarantee for these facilities. The account of the corporate debtor was classified

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## Facts

DBS Bank India Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate insolvency resolution process against Mr. Sukanraj Babutmal Shah, the personal guarantor of SKS Textiles Private Limited. The total debt claimed to be in default is INR 28,79,39,439.56 as of 31.10.2021, with further interest. The corporate debtor availed loan facilities from DBS Bank India Limited, and the personal guarantor provided a guarantee. The account of the corporate debtor was classified as NPA on 06.04.2021. The financial creditor issued a demand notice on January 5, 2022. The personal guarantor denied the averments and contended that the application should be dismissed. The personal guarantor raised objections regarding the changing dates

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## Issues and analysis

### Issue 1: Whether the application filed by DBS Bank India Limited under Section 95(1) of the IBC, 2016 is …

**Ratio:** Section 95(1) of the IBC, 2016 allows a financial creditor to file an application for

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**Reasoning:** The court considered the documents on record and the submissions of both parties. The

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**Interpretation:** Section 95(1) of the IBC, 2016 provides a mechanism for financial creditors to

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**Application:** The court applied Section 95(1) of the IBC, 2016 to the facts of the case and

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** DBS Bank India…
- **Respondents:** SKS Textiles…; Mr.Sukanraj…
- **Advocates:** Nikhil R…; Yahya Bata…

## Timeline

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

## 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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