# In the matter of State Bank of India Vs. Akash Goyal, CP (IB)-472/ND/2022

> NCLT judgment dated 2022-08-24. Citation: TCN-2022-NCLT-01289. The State Bank of India, as the financial creditor, filed an application under Section 95 of…

- **Court:** NCLT
- **Order date:** 24 Aug 2022
- **Citation:** TCN-2022-NCLT-01289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-akash-goyal-cp-a31a6a71

## Summary

### Background

The State Bank of India, as the financial creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against Mr. Akash Goyal, the personal guarantor, in respect of debt disbursed to M/s. Kay Em Copper Pvt. Ltd., the corporate debtor. The corporate debtor had requested and received sanctioned loans from the financial creditor, executing various related documents. The corporate debtor defaulted on repayments, leading to the loan account being classified as a Non-Performing Asset on 12.02.2019. A notice under

…

## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. Akash Goyal, the personal guarantor to the corporate debtor, M/s. Kay Em Copper Pvt. Ltd. The application was filed due to the corporate debtor's default on loan repayments. SBI had sanctioned and disbursed various loans to the corporate debtor, secured by multiple agreements and guarantees, including personal guarantees from Mr. Akash Goyal. The corporate debtor's loan account was classified as a Non-Performing Asset (NPA) on 12.02.2019. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued on 15.02.2019, demanding repayment. The total debt payable by the personal guarantor as of 27.05.2022 was Rs 27,30,07,320. TATA Capital

…

## Issues and analysis

### Issue 1: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the

…

**Reasoning:** The Tribunal considered the arguments advanced by the Ld. Counsel for the Applicant and

…

**Interpretation:** Section 95 allows a financial creditor to apply for initiating the insolvency

…

**Application:** The application filed by State Bank of India met the requirements of Section 95

…

## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Kay Em…; Akash G…

## Timeline

- **2019-02-12 — Loan Account Classified…**: The loan account of the Corporate Debtor…
- **2019-02-15 — Notice under Section…**: A notice under section 13(2) of the Securitisation and Reconstruction of Financial Assets…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-akash-goyal-cp-a31a6a71