# In the matter of SIDBI vs. Shilpaben Mukeshkumar Shah

> NCLT judgment dated 2024-12-20. Citation: TCN-2024-NCLT-00016. The case pertains to an application filed by Small Industries Development Bank of India (SIDBI)…

- **Court:** NCLT
- **Order date:** 20 Dec 2024
- **Citation:** TCN-2024-NCLT-00016
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sidbi-vs-shilpaben-mukeshkumar-shah-c1831ce0

## Summary

### Background

The case pertains to an application filed by Small Industries Development Bank of India (SIDBI) under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating the Insolvency Resolution Process against the personal guarantor, Smt. Shilpaben Mukeshkumar Shah, for a default amount of Rs. 17,31,47,306/- in respect of a Deed of Guarantee dated 20.03.2014. The proceedings were initially put on hold due to pending constitutional validity challenges of Sections 94 to 100 of the IBC, which were later upheld by the Supreme Court. The Interim Resolution Professional (IRP), Mr. Bhupinder Sethi, was appointed and submitted a report recommending the admission of the company petition. Notices were issued to the respondent/personal guarantor and the corporate

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## Facts

Small Industries Development Bank of India (SIDBI) granted a term loan of Rs. 780.00 Lakh to the Corporate Debtor, M/s Alps Liesure Holidays Private Limited, under the Secured Business Loan for MSMEs in Services Sectors Scheme. A Deed of Guarantee was executed on 20.03.2014 by Smt. Shilpaben Mukeshkumar Shah in favor of SIDBI to secure the credit facilities granted to the Corporate Debtor. The Corporate Debtor defaulted on 10.11.2016, and the loan account was classified as NPA on 08.02.2017. SIDBI issued a Recall Notice on 02.05.2017 and a Demand Notice under Section 13(2) of the SARFAESI Act, 2002, on 07.07.2017. The Corporate Debtor sought rescheduling of the loan, which was rejected by SIDBI. SIDBI also issued a notice on 26.05.2020 to the personal guarantors. SIDBI

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## Issues and analysis

### Issue 1: Whether the application filed by SIDBI under Section 95 of the IBC for initiating the Insolvency …

**Ratio:** Section 95 of the IBC allows a creditor to file an application for initiating the

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**Reasoning:** The Tribunal considered the documents on record, including the Deed of Guarantee, the

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**Interpretation:** Section 95 of the IBC provides a mechanism for creditors to recover their dues

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**Application:** In this case, SIDBI, as the creditor, filed an application under Section 95 of

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Small Industries…
- **Respondents:** M/s Alps Liesure…; Shilpaben…
- **Advocates:** Roshan…; Pink…; +1 more

## Timeline

- **2014-03-20 — Deed of Gua…**: Deed of Guarantee executed by Smt.…
- **2016-11-10 — Default by Corporate…**: Corporate Debtor failed to maintain…

## 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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