# In the matter of State Bank of India vs. Ch. GopalaKrishna Murthy

> NCLT judgment dated 2024-02-09. Citation: TCN-2024-NCLT-02683. State Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 Feb 2024
- **Citation:** TCN-2024-NCLT-02683
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ch-gopalakrishna-murthy-1175b154

## Summary

### Background

State Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 ("IBC") to initiate the Insolvency Resolution Process against the Personal Guarantor, Ch. Gopalakrishna Murthy, who is the respondent. The respondent had given a personal guarantee to the loan taken by M/s. Springfield Shelters Private Limited, the Corporate Debtor. The applicant has given particulars of the total debt as Rs.57,12,05,235/- and the amount of default as Rs.57,12,05,235/-, with the date of default being 02.05.2017. The applicant has placed the Guarantee Agreement executed by the Respondent and also the Demand Notice.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Ch. Gopalakrishna Murthy, the personal guarantor. Ch. Gopalakrishna Murthy had provided a personal guarantee for credit facilities availed by M/s. Springfield Shelters Private Limited, the corporate debtor, from SBI. The total debt and the amount of default are both Rs. 57,12,05,235/-, with the date of default being 02.05.2017. SBI submitted the Guarantee Agreement executed by the Respondent and the Demand Notice. The Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor)

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## Issues and analysis

### Issue 1: Whether the application filed by the State Bank of India under Section 95(1) of the Insolvency and …

**Ratio:** Section 95 of the IBC provides that a creditor may apply either by himself, or jointly

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**Reasoning:** The court considered the provisions of Section 95 of the IBC, which allows a creditor to

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**Interpretation:** Section 95 of the IBC provides a mechanism for creditors to initiate insolvency

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**Application:** In this case, State Bank of India, as a creditor, filed an application under

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** State Bank of…
- **Respondents:** Spring Field…; Springfield…; +1 more

## Timeline

- **2017-05-02 — Date of D…**: The date of default for…
- **2021-09-20 — Demand Noti…**: The Demand Notice to the Personal…

## 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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