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

> NCLT judgment dated 2023-11-20. Citation: TCN-2023-NCLT-00715. The case involves an application filed by the Resolution Professional (RP) seeking leave to…

- **Court:** NCLT
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-NCLT-00715
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ajay-kumar-agarwal-b1bb2b02

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking leave to proceed against the personal guarantor under Section 121 of the IB Code. The RP contends that despite sufficient opportunity, the personal guarantor has not proposed any repayment plan. The RP also submitted that, as per the minutes of the Committee of Creditors (CoC), the personal guarantor had stated no objection to the initiation of proceedings under Section 121 of the IB Code.

## Facts

The State Bank of India (Stressed Assets Management Branch) filed a case against Mr. Ajay Kumar Agarwal (G S Oils Limited). The Resolution Professional (RP) filed an application seeking leave to proceed against the personal guarantor under Section 121 of the IB Code. The personal guarantor did not submit any repayment plan despite having sufficient opportunity. The personal guarantor had stated that he has no objection for initiation of proceedings under Section 121 of IB Code. The RP submitted the minutes of the CoC to support the application.

## Issues and analysis

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

**Ratio:** Section 121 of the IB Code allows for proceedings against a personal guarantor when

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

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**Interpretation:** The interpretation of Section 121 of the IB Code is that it provides a

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. SANJA…
- **Appellants:** State Bank of…
- **Respondents:** Ajay Kumar…

## Timeline

- **2023-11-20 — Hearing…**: Hearing held on November 20, 2023,…

## 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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