# In the matter of State Bank of India Vs. Farah Khan, CP (IB) No.950(PB)/2020

> NCLT judgment dated 2022-08-16. Citation: TCN-2022-NCLT-01369. The application IA-3824/2022 was filed by the applicant seeking an extension of 60 days to file…

- **Court:** NCLT
- **Order date:** 16 Aug 2022
- **Citation:** TCN-2022-NCLT-01369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-farah-khan-cp-c6c3e735

## Summary

### Background

The application IA-3824/2022 was filed by the applicant seeking an extension of 60 days to file a report on the decision of the creditors regarding the approval or rejection of the repayment plan submitted by the Personal Guarantor, as per Regulation 19 of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 read with Section 112 of the Insolvency & Bankruptcy Code (IBC). The Resolution Professional is required to file a report showing either approval or rejection of the repayment plan within 120 days from the commencement of the Insolvency Resolution Process.

## Facts

State Bank of India filed an application against Farah Khan under Section 95(1) of the Insolvency & Bankruptcy Code (IBC). The applicant sought an extension of 60 days to file a report on the decision of the creditors regarding the approval or rejection of the repayment plan submitted by the Personal Guarantor. The Resolution Professional is required to file a report showing either approval or rejection of the repayment plan within 120 days from the commencement of the Insolvency Resolution Process. The creditors are considering the repayment plan and require further time to improve it and obtain internal approvals. The timeline for completion of Insolvency Resolution Process is 180 days as per Section 101.

## Issues and analysis

### Issue 1: Whether the applicant should be granted an extension of 60 days to file the report on the decision …

**Ratio:** Regulation 19 of the IBBI (Insolvency Resolution Process for Personal Guarantors to

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**Reasoning:** The court considered the submissions of the applicant's counsel and the fact that the

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**Interpretation:** The court interpreted Regulation 19 and Section 112 to allow for an extension

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash K.…
- **Appellants:** State Bank of…
- **Respondents:** Farah…

## Timeline

- **2022-08-16 — Order del…**: Order delivered on…
- **2022-08-04 — Effective date of…**: Extension of 60 days w.e.f. 04.08.2022 sought in terms of Regulation 19 of the IBBI…

## 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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