# In the matter of State Bank of India vs. G Subba Rao

> NCLT judgment dated 2023-07-06. Citation: TCN-2023-NCLT-02643. The case involves an application filed by the Financial Creditor seeking closure of proceedings…

- **Court:** NCLT
- **Order date:** 6 Jul 2023
- **Citation:** TCN-2023-NCLT-02643
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-g-subba-rao-6c10a891

## Summary

### Background

The case involves an application filed by the Financial Creditor seeking closure of proceedings in CP (IB) No. 105/95/HDB/2022 and seeking leave to file a petition to declare the Personal Guarantor as bankrupt. The Tribunal had previously ordered on 09.01.2023 in IA 1583/2022 that the Personal Guarantor be given sufficient opportunity to submit a repayment plan.

## Facts

The Financial Creditor filed an application IA (IBC) 1083/2023 in CP (IB) No. 105/95/HDB/2022 seeking closure of proceedings and leave to declare Mr. Subba Rao, the Personal Guarantor, as bankrupt. The Tribunal had previously ordered on 09.01.2023 in IA 1583/2022 that the Personal Guarantor be given sufficient opportunity to submit a repayment plan. Despite this opportunity, the Personal Guarantor failed to submit any repayment plan. The Resolution Professional reiterated that no repayment plan was received. The Financial Creditor requested the initiation of proceedings to declare the Personal Guarantor bankrupt. The Tribunal, after hearing the financial creditor and reviewing the records, allowed the CP.

## Issues and analysis

### Issue 1: Whether the Financial Creditor should be granted leave to declare the Personal Guarantor as …

**Ratio:** The legal principle applied is that if a personal guarantor fails to submit a repayment

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**Reasoning:** The court reasoned that the Personal Guarantor was given sufficient opportunity to submit

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**Interpretation:** This legal issue concerns the enforcement of personal guarantees under the

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**Application:** In this specific case, the Personal Guarantor, Mr. Subba Rao, failed to submit

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** State Bank of…
- **Respondents:** Chadalavada…; Subba…

## Timeline

- **2023-01-09 — Tribunal Order in IA…**: Tribunal order dated 09.01.2023 in IA 1583/2022 recorded that the Personal Guarantor was…
- **2023-07-06 — Hearing…**: Hearing held on 06-07-2023 where the…

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