# In the matter of State Bank of India vs. Dhirajlal Girdharbhai Chaniyara

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02170. State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02170
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-dhirajlal-girdharbhai-chaniyara-d2a454cb

## Summary

### Background

State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Insolvency Resolution Process against Mr. Dhirajlal Girdharbhai Chaniyara, the Personal Guarantor of the Corporate Debtor, M/s. Yogiraj Ginning and Oil Industries Pvt Ltd., for a default of Rs.24,41,53,898.12. Credit facilities were sanctioned to the Corporate Debtor on 07.01.2012 and renewed periodically. The Respondent executed personal guarantees for these facilities. The Corporate Debtor's account became NPA on 27.09.2018, leading to the issuance of a notice under Section 13(2) of the SARFAESI Act. The applicant also filed an application under Section 7 of the IBC against the corporate debtor, which was admitted. The application for liquidation

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## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) against Dhirajlal Girdharbhai Chaniyara, the personal guarantor of Yogiraj Ginning and Oil Industries Pvt Ltd, for a default of Rs. 24,41,53,898.12. Credit facilities were sanctioned to the Corporate Debtor starting 07.01.2012 and renewed periodically. Chaniyara executed personal guarantees to secure these facilities. The Corporate Debtor's account became a Non-Performing Asset (NPA) on 27.09.2018. SBI issued a notice under Section 13(2) of the SARFAESI Act to the corporate debtor and personal guarantor on 14.06.2019. SBI also filed an application under Section 7 of the IBC against the corporate debtor, which was admitted. The application for liquidation of the

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## Issues and analysis

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

**Ratio:** The limitation period for filing an application under Section 95 of the IBC is generally

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**Reasoning:** The Tribunal noted discrepancies in the dates of default mentioned by the applicant in

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**Interpretation:** The limitation period is a crucial aspect of insolvency proceedings, and any

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**Application:** The Tribunal found that even if the exclusion of the limitation period during

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** State Bank of…
- **Respondents:** Yogiraj Ginning…; Dhirajlal…

## Timeline

- **2012-01-07 — Sanction of Credit…**: Credit facilities were…
- **2018-09-27 — Account Decla…**: The Corporate Debtor's account…

## 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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