# 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-01366. 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-01366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-farah-khan-cp-e19b2e6b

## 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 creditors regarding the approval or rejection of a 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 applicant argued that the Resolution Professional needs time to file a report showing approval or rejection of the repayment plan within 120 days of 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 creditors regarding the approval or rejection of the repayment plan submitted by the Personal Guarantor. The Resolution Professional is required to file a report within 120 days of the commencement of the Insolvency Resolution Process. The creditors are considering the repayment plan, and further time is required for internal approvals on the revised repayment plan. The timeline for completion of the Insolvency Resolution Process is 180 days. The extension is sought to allow the applicant to file the report as per Section 112 of the Code.

## 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 counsel for the applicant and the need for

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**Interpretation:** The interpretation of Regulation 19 and Section 112 emphasizes the importance

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

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## Parties

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

## Timeline

- **2022-08-04 — Proposed Effec…**: Proposed effective date for the…
- **2022-08-16 — Order Del…**: Order delivered granting the 60-day…

## 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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