# In the matter of Sandeep M Shah

> NCLT judgment dated 2024-10-22. Citation: TCN-2024-NCLT-00381. The case involves a company petition filed by Sandeep M Shah for the initiation of the…

- **Court:** NCLT
- **Order date:** 22 Oct 2024
- **Citation:** TCN-2024-NCLT-00381
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sandeep-m-shah-01412209

## Summary

### Background

The case involves a company petition filed by Sandeep M Shah for the initiation of the Insolvency Resolution Process, acting as the personal guarantor of the corporate debtor. The Financial Creditor invited the bench's attention to a Deed of Guarantee dated 20.10.2009, a notice dated 30.11.2015 issued by SBI under section 13 of the SARFAESI Act 2002, and a notice dated 07.08.2021 issued by SBI invoking Sandeep Shah's personal guarantee. The Financial Creditor also highlighted the deed of guarantee covering all facilities executed by the personal guarantor in favor of the applicant bank.

## Facts

Sandeep M Shah filed a company petition for the initiation of the Insolvency Resolution Process as a personal guarantor for a corporate debtor. The Financial Creditor presented a Deed of Guarantee dated 2009-10-20, a notice issued by SBI on 2015-11-30 under Section 13 of the SARFAESI Act 2002, and a notice issued by SBI on 2021-08-07 invoking the personal guarantee of Sandeep Shah. The Financial Creditor also drew attention to the guarantee covering all facilities executed by the personal guarantor for the applicant bank. The corporate debtor defaulted, leading the petitioner to invoke the personal guarantee and issue an Invocation Letter for outstanding dues.

## Issues and analysis

### Issue 1: Whether the company petition filed by Sandeep M Shah for initiation of the Insolvency Resolution …

**Ratio:** The court has the power to initiate the Insolvency Resolution Process if the application

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**Reasoning:** The bench considered the submissions and perused the documents, concluding that the

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**Interpretation:** This implies that the court assessed the petition against the statutory

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**Application:** Based on the completeness of the petition, the court proceeded to appoint a

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Sandeep M…
- **Advocates:** Aashish…

## Timeline

- **2009-10-20 — Deed of Gua…**: Deed of Guarantee…
- **2015-11-30 — SBI Notice under…**: SBI issued notice under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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