# In the matter of South Indian Bank Ltd Vs. G Palani G Periyasamy, CP (IB)/155/2021

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02342. The case involves an application filed by The South Indian Bank Limited under Section 95(1) of…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02342
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/south-indian-bank-ltd-vs-g-palani-g-periyasamy-cp-d0a55876

## Summary

### Background

The case involves an application filed by The South Indian Bank Limited under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Dr. G Palani G Periyasamy, the personal guarantor of Dharani Sugars & Chemicals Limited, a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default, with the last date of default being 30.11.2019. The Financial Creditor has also placed on file the Record of Default.

## Facts

The South Indian Bank Limited filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Dr. G Palani G Periyasamy, who is the personal guarantor for Dharani Sugars & Chemicals Limited. Dharani Sugars & Chemicals Limited is a corporate debtor currently undergoing Corporate Insolvency Resolution Process (CIRP). The application was filed due to a default, with the last date of default being 30.11.2019. The bank, as the financial creditor, submitted a record of default. The respondent's counsel argued that the application should be dismissed on the grounds of maintainability. The personal guarantor had executed a Deed of Guarantee on 16.03.2015, 28.09.2015, and 16.04.2016. A demand notice was issued to the personal guarantor on

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The NCLAT's ruling in Mr. Ravi Ajit Kulkarni -Vs- State Bank of India establishes that

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**Reasoning:** The court considered the NCLAT's judgment, which mandates the Adjudicating Authority to

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**Interpretation:** Section 95 of the IBC, 2016 allows financial creditors to initiate insolvency

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**Application:** The court applied the ratio of the NCLAT's judgment to the present case,

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## Parties

- **Judges:** Ramalingam…; Shri. Samee…
- **Appellants:** The South Indian…
- **Respondents:** Dharani Sugars…; G Palani G…

## Timeline

- **2019-11-30 — Last Date of…**: The last date of default…
- **2020-08-20 — Demand Notice…**: Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy Rules, 2019 to 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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