# In the matter of State Bank of India vs. Ch. Venkateswara Rao

> NCLT judgment dated 2024-02-09. Citation: TCN-2024-NCLT-02649. 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-02649
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ch-venkateswara-rao-a5a5675e

## 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. Venkateswara Rao, who is associated with M/s. Springfield Shelters Private Limited, the Corporate Debtor. The application pertains to credit facilities availed by M/s. Springfield Shelters Private Limited from the Applicant, for which the Respondent provided a personal guarantee. The total debt and the amount of default are both stated as Rs. 57,12,05,235/-, with the date of default being 02.05.2017. The Applicant has submitted the Guarantee Agreement and Demand Notice as evidence.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Insolvency Resolution Process against Ch. Venkateswara Rao, the Personal Guarantor. Ch. Venkateswara Rao is associated with M/s. Springfield Shelters Private Limited, the Corporate Debtor. M/s. Springfield Shelters Private Limited had availed credit facilities from SBI. Ch. Venkateswara Rao had given a personal guarantee for the loan. 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 has submitted the Guarantee Agreement and Demand Notice. The Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India under Section 95(1) of the IBC for initiating …

**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 Section 95 of the IBC, which outlines the procedure for a creditor

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**Interpretation:** Section 95 of the IBC allows a creditor to initiate the insolvency resolution

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**Application:** In this case, State Bank of India, as the 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 on the loan for which the personal guarantee was provided is…
- **2021-09-20 — Demand Noti…**: The Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy (Application to…

## 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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