# In the matter of State Bank of India vs. Bank of Baroda

> NCLT judgment dated 2023-05-16. Citation: TCN-2023-NCLT-03345. This case involves an application (IA 154/2023) filed by State Bank of India (SBI) in CP IB…

- **Court:** NCLT
- **Order date:** 16 May 2023
- **Citation:** TCN-2023-NCLT-03345
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-bank-of-baroda-585fb7ff

## Summary

### Background

This case involves an application (IA 154/2023) filed by State Bank of India (SBI) in CP IB 425/2022, seeking an order to restrain Bank of Baroda (Respondent No. 1) from proceeding with an E-Auction notice dated 20.11.2022. The notice was issued under the Security Interest (Enforcement) Rules, 2002, concerning the property of personal guarantors. SBI also sought a declaration that the notice is void and illegal. The sale notice pertained to the properties of Mr. Vinod Kumar Mohota, a personal guarantor, related to credit facilities availed by M/s. Navrang Enterprises from Bank of Baroda. SBI informed Bank of Baroda that an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, had been filed against Mr. Mohota for personal insolvency, triggering a

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## Facts

State Bank of India (SBI) filed an application (IA 154/2023) in CP IB 425/2022 seeking to restrain Bank of Baroda (BOB) from proceeding with an E-Auction notice dated 20.11.2022 concerning the property of Mr. Vinod Kumar Mohota, a personal guarantor for credit facilities availed by M/s. Navrang Enterprises from BOB. SBI informed BOB that an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) had been filed against Mr. Mohota on 04.03.2022, triggering an interim moratorium. Despite this, BOB proceeded with the auction. The sale notice for the properties of the Personal Guarantors i.e. Mr. Vinod Kumar Mohota in relation to the Credit facilities availed by M/s. Navrang Enterprises from Bank of Baroda was published in the newspaper on 20.11.2022 and

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## Issues and analysis

### Issue 1: Whether the E-Auction notice dated 20.11.2022 issued by Bank of Baroda is illegal and void due to …

**Ratio:** Section 96(1)(a) of the Insolvency and Bankruptcy Code, 2016, stipulates that an interim

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**Reasoning:** The court reasoned that since the application under Section 95 was filed on 04.03.2022,

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**Interpretation:** Section 96 is interpreted to mean that upon filing of an application under

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**Application:** In this case, the interim moratorium commenced on 04.03.2022. The E-Auction

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** State Bank of…
- **Respondents:** Navrang Enterprise…; Bank of B…

## Timeline

- **2022-03-04 — Filing of Section 95…**: Application under Section 95 of the Insolvency and Bankruptcy Code, 2016, filed against…
- **2022-05-10 — Symbolic Possession by…**: Bank of Baroda took symbolic possession of the property under Section 13(4) of the…

## 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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