# In the matter of State Bank of India vs. Abhilahsa Aggarwal

> NCLT judgment dated 2024-01-08. Citation: TCN-2024-NCLT-03247. The State Bank of India filed an application under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Jan 2024
- **Citation:** TCN-2024-NCLT-03247
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-abhilahsa-aggarwal-f8028a9c

## Summary

### Background

The State Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against Mrs. Abhilahsa Aggarwal, a personal guarantor to a corporate debtor. The application seeks to initiate the Insolvency Resolution (IR) process against the personal guarantor.

## Facts

The State Bank of India (SBI) filed an application under Section 95(1) of the IBC, 2016, read with Rule 7 of the relevant rules, against Mrs. Abhilahsa Aggarwal, who is a personal guarantor to a corporate debtor. The SBI seeks to initiate the Insolvency Resolution (IR) process against Mrs. Aggarwal. A demand notice dated 28.06.2021 was issued to the personal guarantor. The application included a demand for payment of the amount of default. Upon filing the application, an interim moratorium under Section 96(1)(a) of the IBC commenced. The court appointed Mr. Yogender Pal Singhal as the Resolution Professional (RP). The RP's details, including IBBI registration number and email address, were provided. The RP is required to perform functions under Section 99 of the IBC

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## Issues and analysis

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

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

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**Reasoning:** The court considered the application filed by the State Bank of India and the demand

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**Interpretation:** Section 95(1) provides a mechanism for creditors to pursue insolvency

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**Application:** The court found that the State Bank of India, as a creditor, had filed an

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## Parties

- **Judges:** SH. MANNI…; Sanjeev R…
- **Appellants:** State Bank of…
- **Respondents:** Abhilahsa A…

## Timeline

- **2021-06-28 — Demand N…**: Demand Notice issued to Mrs. Abhilahsa Aggarwal under clause (b) of sub-Section 4 of…
- **2024-01-08 — Order Del…**: Order delivered by the NCLT, admitting the application and appointing Mr. Yogender Pal…

## 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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