# In the matter of State Bank of India vs. Ankit B. Parikh & Ors.

> NCLT judgment dated 2024-02-22. Citation: TCN-2024-NCLT-02465. The State Bank of India, acting as the Financial Creditor, initiated a Company Petition under…

- **Court:** NCLT
- **Order date:** 22 Feb 2024
- **Citation:** TCN-2024-NCLT-02465
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ankit-b-parikh-ors-49fc0923

## Summary

### Background

The State Bank of India, acting as the Financial Creditor, initiated a Company Petition under Section 123 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to commence bankruptcy proceedings against Mr. Ankit B. Parikh, the Personal Guarantor of Parikh Fabrics Private Limited, the Corporate Debtor. The Corporate Debtor had availed financial assistance, and Mr. Parikh stood as a guarantor. The Corporate Debtor's account was declared NPA on 30.08.2011, and an opportunity for OTS was given in 2016. The Corporate Debtor had also filed CP (IB) No.12/10/HDB/2019 under Section 10 of the Code, and the Tribunal

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## Facts

State Bank of India (SBI) extended financial assistance to Parikh Fabrics Private Limited, with Mr. Ankit B. Parikh acting as the personal guarantor. The Corporate Debtor defaulted on its repayment obligations, leading SBI to classify the account as a Non-Performing Asset (NPA) on August 30, 2011. An opportunity for a One-Time Settlement (OTS) was provided in 2016, but the Corporate Debtor failed to adhere to the terms, resulting in the cancellation of the OTS. SBI issued a demand notice under Section 13(2) of the SARFAESI Act in July 2013 and filed OA No.188/2014 before the Debts Recovery Tribunal, Hyderabad, to recover the outstanding amounts. The Corporate Debtor also initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the IBC, which

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 123 of the Insolvency and …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, along with the relevant rules, provides a

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**Reasoning:** The Tribunal considered the fact that the Corporate Debtor had defaulted on its repayment

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**Interpretation:** Section 123 of the IBC, read with Rule 7 of the relevant rules, allows a

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**Application:** In this case, the Corporate Debtor had defaulted on its repayment obligations,

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** State Bank of…
- **Respondents:** Parikh Fabrics…; Mr.Ankit B.…

## Timeline

- **2011-08-30 — Account decla…**: The account of the Corporate Debtor was…
- **2016-01-01 — Opportunity…**: An opportunity was given to the Corporate Debtor to settle the accounts under One-Time…

## 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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