# In the matter of State Bank of India vs. Aliben Shamlabhai Movaniya

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02171. State Bank of India (Financial Creditor) filed an application under Section 95 of the…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-aliben-shamlabhai-movaniya-56bca1bb

## Summary

### Background

State Bank of India (Financial Creditor) filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mrs. Aliben Shamlabhai Movaniya, the Personal Guarantor of the Corporate Debtor, M/s. Yogiraj Ginning and Oil Industries Pvt Ltd, for a default amount of Rs. 24,41,53,898.12. Credit facilities were sanctioned to the Corporate Debtor as per the letter of arrangement dated 07.01.2012 and were renewed periodically. The Respondent executed a personal guarantee in favor of the applicant for securing various credit facilities to the Corporate Debtor. The Corporate Debtor defaulted, leading to its account becoming a Non-Performing Asset (NPA) on 27.09.2018. The applicant issued a notice on

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## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) to initiate the Insolvency Resolution Process (IRP) against Mrs. Aliben Shamlabhai Movaniya, the personal guarantor for M/s. Yogiraj Ginning and Oil Industries Pvt Ltd, due to a default of Rs. 24,41,53,898.12. SBI had sanctioned credit facilities to the Corporate Debtor, which were renewed over time, and Movaniya provided a personal guarantee. The Corporate Debtor's account became an NPA on 27.09.2018. SBI issued a notice under Section 13(2) of the SARFAESI Act on 14.06.2019. The RP recommended initiating IRP against the personal guarantor. Movaniya objected, claiming the application was time-barred, citing a default date of 30.06.2018 in the Information Utility

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India against Mrs. Aliben Shamlabhai Movaniya is …

**Ratio:** The limitation period for initiating insolvency proceedings is generally three years from

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**Reasoning:** The court observed discrepancies in the dates of default provided by the applicant. The

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**Interpretation:** The court interpreted the provisions of the IBC and the Limitation Act to

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**Application:** The court applied the legal principles to the facts of the case and concluded

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** State Bank of…
- **Respondents:** Yogiraj Ginning…; Aliben Shamlabhai…

## Timeline

- **2012-01-07 — Letter of Arr…**: Credit facilities were…
- **2018-09-27 — Account Decla…**: The Corporate Debtor's credit facility…

## 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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