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

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02152. 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-02152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-aliben-shamlabhai-movaniya-5935f5de

## Summary

### Background

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

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## Facts

State Bank of India, the financial creditor, initiated insolvency proceedings against Aliben Shamlabhai Movaniya, the personal guarantor of Yogiraj Ginning and Oil Industries Pvt Ltd, for a default of Rs. 24,41,53,898.12. Credit facilities were sanctioned to the Corporate Debtor from 07.01.2012, and renewed periodically. The respondent executed personal guarantees to secure these facilities. The Corporate Debtor's account became an NPA on 27.09.2018, leading to a SARFAESI notice on 14.06.2019. The applicant also filed an application under Section 7 of the IBC against the corporate debtor, which was admitted. The personal guarantor contested the application, citing limitation issues, discrepancies in the default date, and the absence of a valid revival letter. The RP

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## Issues and analysis

### Issue 1: Whether the application is maintainable …

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

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**Reasoning:** The court considered the date of default as per the Information Utility certificate

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**Interpretation:** The court interpreted the limitation period based on the date of default and

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**Application:** The court found that even after considering the excluded periods, the

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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 — NPA 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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