# In the mater of State Bank of India Vs. Mrs. Radha Krishan Mehndiratta, IA (I.B.C) 5518 in PB/2021 CP (IB) No/310/(PB)/2021

> NCLT judgment dated 2022-04-19. Citation: TCN-2022-NCLT-03206. The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Apr 2022
- **Citation:** TCN-2022-NCLT-03206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/in-the-mater-of-state-bank-of-india-vs-mrs-radha-krishan-mehndiratta-ia-d5579a84

## Summary

### Background

The State Bank of India filed an application under Section 95 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 the Insolvency Resolution Process against the personal guarantor, Mrs. Radha Krishan Mehndiratta, of the corporate debtor M/s Mastana Foods Private Limited. The corporate debtor's account was declared NPA on 2017-09-13. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 2019-09-18 based on an application by the Financial Creditor under Section 7 of the IBC, 2016.

## Facts

The State Bank of India (SBI) initiated proceedings against Mrs. Radha Krishan Mehndiratta, the personal guarantor of M/s Mastana Foods Private Limited, a corporate debtor. M/s Mastana Foods Private Limited had availed various loan facilities amounting to Rs. 249.85 crore plus warehouse receipt financing of Rs. 25 crore. The account of the Corporate Debtor was declared NPA by SBI on 2017-09-13. SBI issued a notice under the SARFAESI Act to recall the credit facilities sanctioned to the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 2019-09-18. SBI also filed an Original Application against the Corporate Debtor and all the Guarantors, including Mrs. Radha Krishan Mehndiratta, before the Debts Recovery

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 100 of the Insolvency and Bankruptcy Code, 2016, allows for the admission of an

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**Reasoning:** The Tribunal relied on the report submitted by the Resolution Professional, which

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**Interpretation:** Section 100 provides the legal basis for admitting an application for

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**Application:** Based on the RP's report and the guarantor's admission, the Tribunal admitted

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** State Bank of…
- **Respondents:** M/s Mastana Foods…; RADHA KRISHAN…

## Timeline

- **2017-09-13 — Corporate Debtor…**: The account of M/s Mastana Foods Private Limited was declared NPA by the Financial…
- **2019-09-18 — CIRP Initiated Against…**: Corporate Insolvency Resolution Process was initiated against the Corporate Debtor by the…

## 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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