# In the matter of State Bank of India Vs. Anuradha Sachdev, CP (IB)-810/ND/2021

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03763. The case involves an application preferred by State Bank of India (SBI), the…

- **Court:** NCLT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLT-03763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-anuradha-sachdev-cp-979ba894

## Summary

### Background

The case involves an application preferred by State Bank of India (SBI), the 'Applicant/Financial Creditor', under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for IRP for Personal Guarantors to Corporate Debtor) Rules, 2019, for initiating the Insolvency Resolution Process (IRP) against Ms. Anuradha Sachdev, the Personal Guarantor/Debtor, who is the Guarantor of M/s Auto Decor Pvt. Ltd. (the 'Corporate Debtor'). SBI had provided various financial facilities to the Corporate Debtor, which were reviewed/enhanced over time. The corporate debtor is the principal borrower who approached the financial creditor for financial assistance. The financial creditor

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## Facts

State Bank of India (SBI) extended financial facilities to M/s Auto Decor Pvt. Ltd., with Ms. Anuradha Sachdev acting as the personal guarantor. The facilities were sanctioned and enhanced over time, with various credit facilities provided. The corporate debtor defaulted on repayments, leading to the account being classified as a Non-Performing Asset (NPA) on 31.03.2014. SBI invoked the guarantee by issuing a notice dated 04.10.2016, under Section 13(2) of the SARFAESI Act, to both the corporate debtor and the personal guarantor. Liquidation proceedings against the corporate debtor were initiated on 04.06.2019. SBI issued a demand notice on 08.07.2021, to the personal guarantor for the outstanding amount of Rs. 72,90,64,845.33. SBI filed an application under Section

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95(1) of the IBC, 2016, for initiating the Insolvency …

**Ratio:** Section 95(1) of the IBC, 2016, allows a creditor to apply for initiating an insolvency

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**Reasoning:** The court notes that the applicant has stated that the Application has been filed through

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**Interpretation:** Section 95(1) of the IBC provides the legal basis for a creditor to initiate

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**Application:** In this case, SBI, as the creditor, has filed the application through a

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** State Bank of…
- **Respondents:** Auto Decor Pvt.…; Anuradha S…

## Timeline

- **2007-07-09 — Financial Ass…**: Corporate debtor approached financial Creditor for financial assistance. Financial…
- **2008-12-17 — Enhancement of Credit…**: Corporate debtor approached applicant/Financial creditor for enhancement of the credit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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