# In the matter of State Bank of India Vs. B Manohari, CP (IB) No. 96/CHE/2021

> NCLT judgment dated 2022-07-21. Citation: TCN-2022-NCLT-01608. This case involves an application filed by State Bank of India (SBI) under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 21 Jul 2022
- **Citation:** TCN-2022-NCLT-01608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-b-manohari-cp-b2359ef9

## Summary

### Background

This case involves an application filed by State Bank of India (SBI) under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Smt. B. Manohari, who is a personal guarantor to the Corporate Debtor, M/s. Leo Primecomp Private Limited. SBI, as the financial creditor, seeks to initiate insolvency proceedings against the personal guarantor due to the default on credit facilities extended to the Corporate Debtor. The Corporate Debtor was already undergoing Corporate Insolvency Resolution Process (CIRP) initiated by the Tribunal.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Smt. B. Manohari, who is the personal guarantor for the Corporate Debtor, M/s. Leo Primecomp Private Limited. SBI had extended credit facilities to the Corporate Debtor. The Corporate Debtor was already undergoing CIRP initiated by the Tribunal. The Guarantee Agreement was dated 03.11.2005. The date of default was 21.12.2018, and the Personal Guarantee was invoked on 01.07.2020 by issuing a Demand Notice. The CIR Process had been initiated by this Tribunal vide order dated 24.07.2019 in IBA/578/2019.

## Issues and analysis

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

**Ratio:** The NCLAT, Principal Bench, in the matter of Mr. Ravi Ajit Kulkarni -Vs- State Bank of

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**Reasoning:** The Tribunal relied on the NCLAT's observation that once an application under Section 95

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**Interpretation:** Section 95 of the IBC provides for the initiation of insolvency resolution

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**Application:** Given the NCLAT's observation and the applicant's proposal for an IRP, the

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## Parties

- **Judges:** (Retd.) S.…; SAMEER…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Leo Primecomp…; Smt B. MA…

## Timeline

- **2005-11-03 — Guarantee Agree…**: The Guarantee Agreement…
- **2018-12-21 — Date of D…**: The date of default as…

## 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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