# In the matter of State Bank of India vs. Ajay Kumar Agarwal

> NCLT judgment dated 2023-11-20. Citation: TCN-2023-NCLT-00713. The case involves an application (IA (IBC) 1766/2023) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-NCLT-00713
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ajay-kumar-agarwal-9539cbdd

## Summary

### Background

The case involves an application (IA (IBC) 1766/2023) filed by the Resolution Professional (RP) seeking leave to proceed against the personal guarantor of the Corporate Debtor, State Bank of India (Stressed Assets Management Branch). The application is based on the grounds that the personal guarantor has not come forward with any repayment plan despite sufficient opportunity.

## Facts

The Resolution Professional (RP) filed an application (IA (IBC) 1766/2023) seeking leave to proceed against the personal guarantor of the Corporate Debtor, State Bank of India (Stressed Assets Management Branch). The basis for the application is that the personal guarantor did not propose a repayment plan despite being given sufficient opportunity. The RP also submitted that, according to the minutes of the Committee of Creditors (CoC), the personal guarantor had stated that they had no objection to the initiation of proceedings under Section 121 of the IB Code. The court noted the absence of a repayment plan submitted by the RP.

## Issues and analysis

### Issue 1: Whether the Resolution Professional should be granted leave to initiate proceedings against the …

**Ratio:** Leave to initiate proceedings under Section 121 of the IB Code can be granted when the

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**Reasoning:** The court reasoned that since the personal guarantor had not submitted a repayment plan

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**Interpretation:** Section 121 of the IB Code allows for proceedings against a personal guarantor.

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**Application:** The court applied the ratio to the facts of the case, noting that the personal

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## Parties

- **Judges:** Venkata Ramakrishn…; Sanjay…
- **Appellants:** State Bank of…
- **Respondents:** Ajay Kumar…

## Timeline

- **2023-11-20 — Hearing…**: Attendance cum order sheet of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 121 — Application for bankruptcy](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-121)

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